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Chinese ride-hailing company Didi Chuxing is set to acquire Uber’s Chinese business.
Bloomberg has reported that the Chinese service will buy Uber for $35 billion (£26 billion), acquiring its brand, business and data.
Bloomberg also released a blog written by Uber CEO Travis Kalanick before its publication. “As an entrepeneur, I’ve learned that being successful is about listening to your head as well as following your heart,” he wrote.
“I have no doubt that Uber China and Didi Chuxing will be stronger together.”
This ends a bitter battle between the two rival tech companies in China. Both spent vast amounts of money to compete with each other – causing Uber shareholders to voice concerns about the venture, especially as Didi Chuxing took the clear market share in the country.
Kalenick said neither company had yet made a profit in China. However, with the government passing a new rule last week legalising ride-hailing services, this may well be the beginning of the road to profitability for Didi Chuxing.
China is a notoriously tricky place for Western startups and tech firms to flourish, the country instead favouring their own technologies (think Weibo instead of Facebook, and WeChat over Whatsapp).
