Uber Said to Merge China Business With Didi in $35 Billion Deal

arto71

Well-Known Member
http://www.bloomberg.com/news/artic...e-china-business-with-didi-in-35-billion-deal

Uber Technologies Inc. will merge its China business with Didi Chuxing, the dominant ride-hailing service in the country, according to people familiar with the matter.

The valuation of the combined ride-hailing company is $35 billion, the people said. Investors in Uber China, an entity owned by San Francisco-based Uber, Baidu Inc. and others, will receive a 20 percent stake in the combined company, the people said. Uber will continue to operate its own app in China for now.

Didi is making a $1 billion investment in Uber at a $68 billion valuation, people familiar with the matter said. Uber declined to comment, and Didi didn’t immediately respond to a request for comment.

“As an entrepreneur, I’ve learned that being successful is about listening to your head as well as following your heart,” Travis Kalanick, chief executive officer of Uber, wrote in a blog post obtained by Bloomberg. “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there. Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term.”

The Chinese government passed a new rule last week that legalized ride-hailing services, paving the way for further expansion of these businesses.

Uber’s investors had been clamoring for the company to sell off its China assets. Both Uber and Didi have been spending significantly to compete in China. Uber has lost more than $2 billion in the country, people familiar with the matter said. In the first half of 2015, Uber was profitable in developed markets, the people said.

In China, Uber ventured where few U.S. technology companies have succeeded. In 2005, Yahoo! Inc. made a similar deal, selling its businesses in China to Alibaba Group Holding Ltd., along with a $1 billion investment -- one of the internet company’s best bets.


While Uber will walk away from operations in China, it is taking a significant stake in its largest competitor there. By shedding its massive losses in China, Uber will help clear the path for an eventual initial public offering.
 

arto71

Well-Known Member
  • Thread Starter Thread Starter
  • #3
I thought Didi hooked up with Lyft. Maybe that's a US thing only,
Didi invested in Lift,GM invested in lift,Travis K wife/girlfriend invested in Apple,Apple invested in Didi,Toyota invested in uber,VW invested in Gett,
Google invested in Uber and purchased Waze, waze launched Ride-with.....
Do you need more ? or I gave you enough headache for next few days ?
 

uberalles60

Well-Known Member
Didi invested in Lift,GM invested in lift,Travis K wife/girlfriend invested in Apple,Apple invested in Didi,Toyota invested in uber,VW invested in Gett,
Google invested in Uber and purchased Waze, waze launched Ride-with.....
Do you need more ? or I gave you enough headache for next few days ?

This is reminiscent of the old days when royalty married royalty in order to make trade and political alliances! So in essence nothing has changed in low these many years!!!
 

Old Smokey

Well-Known Member
What this means is FUBER is low on money. In this game of Texas HOLD'EM, Didi went all in and kept winning each hand. FUBER better concentrate on paying its LAWSUITS, STATES THAT ARE PENALIZING THEM FOR EMPLOYEE MISCLASSIFICATION, AND IT'S SHAREHOLDERS. A PUBLIC HANGING OF TRAVIS IS NOT OUT OF THE QUESTION!!!!!!
 

arto71

Well-Known Member
  • Thread Starter Thread Starter
  • #8
I thought Didi hooked up with Lyft. Maybe that's a US thing only,
Part 2, hope you're ready

It gets (even more) complicated

"With Didi investing $1 billion in Uber, Apple, which in May invested $1 billion in Didi, becomes an indirect investor in Uber. Google also invested in Uber in 2013, even though Uber is now spurning Google Maps for its own technology. All three companies are racing to develop self-driving cars. Even odder, with its investment in Didi, Uber now owns part of a company with a $100 million investment in Lyft.
 

soulwarrior

Well-Known Member
Part 2, hope you're ready

It gets (even more) complicated

"With Didi investing $1 billion in Uber, Apple, which in May invested $1 billion in Didi, becomes an indirect investor in Uber. Google also invested in Uber in 2013, even though Uber is now spurning Google Maps for its own technology. All three companies are racing to develop self-driving cars. Even odder, with its investment in Didi, Uber now owns part of a company with a $100 million investment in Lyft.
As a driver I know that driver less cars will never happen. Only those who have never been a driver think it is possible. Typical inexperienced detached management stupidity.
 
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