Uber is merging with rival Didi Chuxing in China

Uber is merging with rival Didi Chuxing in China
Credit: Didi Chuxing

Chinese cab service Didi Chuxing is gearing up to merge with Uber’s operations in the country, reports Bloomberg.

The homegrown cab company is investing $1 billion in Uber based on a $68 billion valuation; the combined value of the new entity will be about $35 billion.

The report follows a new ruling in China which legalized ride-hailing services in the country at the end of last month. Bloomberg’s sources say that Uber has already wasted $2 billion in attempting to compete with Didi Chuxing, so the move could help the San Francisco-based company cut its losses and continue to make money there.

It’s also no doubt a big win for Didi Chuxing, which has been on the warpath for some time now. In May, it scored a $1 billion investment from Apple; last December, it forged an alliance with cab services Ola, Lyft and GrabTaxi to boost its attack on Uber.

The company rolled out a service in April which allows users from China to easily hail and pay for rides across India, Southeast Asia and the US from a single app.

That strategy, combined with today’s reported merger, will see Didi Chuxing reign supreme in China’s massive mobility market.

Update: Uber CEO Travis Kalanick confirmed the deal in a Facebook post today, noting that his company will hold a 20 percent stake in the newly combined entity.

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

Read next: Missed the Windows 10 update deadline? You can still upgrade for free

Corona coverage

Read our daily coverage on how the tech industry is responding to the coronavirus and subscribe to our weekly newsletter Coronavirus in Context.

For tips and tricks on working remotely, check out our Growth Quarters articles here or follow us on Twitter.