The Battle That Costed Uber over 2 Billions

In the latest development, the infamous tussle between Uber and Didi Chuxing seems to have come to an end. The two were competing for the leading spot in China’s taxi-aggregation business. Now, Didi would be acquiring Uber’s Chinese operations, thus putting an end to a battle that has cost Uber over two billion in the last two years.

The Truce

Being Chinese, Didi Chuxing always had an advantage over Uber in the country. It was already attracting drivers and customers with various subsidies at an offer. It is believed that Uber has spent over 2 billion in last two years just to find a stronghold in the Chinese market. Because both companies were doing much harm to each other’s business, this truce is being seen as a welcome step.

The Deal

As per the agreement between the two corporations, Didi will acquire Uber’s brand, business, and data by offering a partnership deal of 5.89 % stake in the joint venture. It will also receive an equity interest of 17.7% on economic benefits. Baidu Inc., which has been a partner of Uber in China, will be getting 2.3% of the economic benefits. Additionally, the founder of Didi- Cheng Wei, and CEO of Uber Inc.- Travis Kalanick will join the board of each others’ companies.

What do you think about this partnership? Share your comments in the comments section below.

Takeaways:

• Didi would be acquiring Uber’s Chinese operations, thus putting an end to a battle that has cost Uber over two billion in the last two years.
• Didi will acquire Uber’s brand, business, and data by offering a partnership deal of 5.89 % stake in the joint venture.
• It will also receive an equity interest of 17.7% on economic benefits.
• Additionally, the founder of Didi- Cheng Wei, and CEO of Uber Inc.- Travis Kalanick will join the board of each others’ companies.

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