Didi Chuxing has reached an agreement to acquire Uber in China following a $1 billion investment by Apple, reports Bloomberg.
Didi will buy Uber's brand, business and data in the country, the Chinese company said in a statement. Uber Technologies and Uber China's other shareholders, including search giant Baidu Inc., will receive a 20 percent economic stake in the combined company. Didi founder Cheng Wei and Uber Chief Executive Officer Travis Kalanick will join each other's boards.
The two companies have been battling intensely for dominance in the country. Uber is said to have been spending $1 billion a year trying to gain ground.
"Didi Chuxing and Uber have learned a great deal from each other over the past two years," said Cheng, who is also CEO, in the statement. "This agreement with Uber will set the mobile transportation industry on a healthier, more sustainable path of growth at a higher level."
"Uber and Didi Chuxing are investing billions of dollars in China, and both companies have yet to turn a profit there," Kalanick writes. "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 value of the combined companies will be approximately $35 billion.
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Didi will buy Uber's brand, business and data in the country, the Chinese company said in a statement. Uber Technologies and Uber China's other shareholders, including search giant Baidu Inc., will receive a 20 percent economic stake in the combined company. Didi founder Cheng Wei and Uber Chief Executive Officer Travis Kalanick will join each other's boards.
The two companies have been battling intensely for dominance in the country. Uber is said to have been spending $1 billion a year trying to gain ground.
"Didi Chuxing and Uber have learned a great deal from each other over the past two years," said Cheng, who is also CEO, in the statement. "This agreement with Uber will set the mobile transportation industry on a healthier, more sustainable path of growth at a higher level."
"Uber and Didi Chuxing are investing billions of dollars in China, and both companies have yet to turn a profit there," Kalanick writes. "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 value of the combined companies will be approximately $35 billion.
Read More