After pouring billions of dollars into the world’s largest market, an Uber China merger with chief competitor Didi Chuxing has been announced.
Under the terms of the deal per Business Insider, Didi will make a $1 billion investment in Uber’s global operations, while Uber China investors—including Chinese Internet giant Baidu—will get a 20% share of the new organization. The report puts the new company’s valuation at $35 billion.
Uber China was launched two years ago, and since, has grown to provide “over 150 million rides per month”, according to Uber CEO Travis Kalanick. Despite its popularity, however, the ridesharing service has yet to turn a profit in China. Prior to the Uber China merger, Didi operated in more than 400 cities in the Asian market, while Uber was in a mere 60.
Aside from just the consumer numbers, Didi had its fair share of financial support as well. Just recently, Apple invested $1 billion in the service, topping off a whopping $7.3 billion fundraising round.
There’s no word at this time as to when Uber China will officially become Didi, or how this will impact drivers working for either service.