Uber quits China and sells business in the country to its rival Didi Chuxing

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Today Uber announced that its selling its business in China to the biggest local rival – Didi Chuxing. After a two-year battle that cost the ride-hailing firm $2 billion it decided to give up as its market share in China did not grow as anticipated. With 87% of the Chinese ride sharing market Didi was leaving Uber far behind.

Founded in 2012 in Beijing, Didi Chunxing is one of the most valuable start-ups in China worth around $28 billion. Just a few months ago we were reporting that Didi got an $1 billion investment from Apple. Interestingly this merger means that now Apple owns a piece of Uber;).

For Uber losing this battle doesn’t mean that it’s losing the war. Actually looking ahead to its IPO Uber is proving to be a mature company which is not afraid to make difficult decisions in order to maintain the profitability. Removing the cash-sucking China business will unlock $1 billion a year to invest in other areas like mapping or developing its new initiatives e.g. food delivery. With China off of the company’s plate, Uber can also now focus on other challenges like regulatory problems in Europe among others.

Uber is joing the long list of tech and Internet companies that failed to crack the code of doing business in China… At the end, maybe for its own good.

 

I'm a professional always thinking outside the box and a self-confessed gadget addict. As a son of a professor of cartography I was surrounded by maps all my life and as a result spatial way of thinking and seeing reality is naturally embedded in who I am.

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