Monday, August 01, 2016

Uber will merge with main rival in China

Beijing-the shared transport company will merge their business in China Uber with its local rival Didi Chuxing, confirmed the Chinese company through the press officer of the Asian country.
Rumors about the merger, from which rises a firm valued at $ 35 billion, had been leaked in the early hours of today through an alleged statement from the Chief Executive of Uber, Travis Kalanick.
"I have no doubt that Uber China and Didi Chuxing will be stronger together," said the text assigned to Kalanick, who stated that the main reason for the merger is to seek economic profit that will enable the business to continue, since the two firms "are investing billions of dollars in China", but still failed to be profitable.
Kalanick stressed that this did not prevent his firm growing rapidly in the promising Chinese market, with travel monthly 150,000,000 in just two years of operations.
By the operation, the Uber China will participate in 20% of the new company born from the merger, while Didi Chuxing will invest $ 1 billion in the global business of the Californian company.
The announcement happened just three days after the Government of China announced new regulations that legalize definitely Uber activities, Didi Chuxing and other shared transport networks accessible via internet and phone.
The legislation ended years of uncertainty in which Uber and Didi were operating illegal manner in the Asian country, in the face of protests from taxi services and frequent investigations against these platforms on the part of local authorities.
Exame News Item translated automatically
Click HERE to see original
Other news
DATAMARK LTDA. © Copyright 1998-2020 ®All rights reserved.Av. Brig. Faria Lima,1993 third floor 01452-001 São Paulo/SP