Tech unicorn makes big deal
Ride-hailing app and one of the world’s most valuable start-ups Uber is reportedly merging it Chinese business with its biggest rival in the area, Didi Chuxing.
According to various media reports, Uber China is taking a 20 per cent stake in the company in a stonking $35bn (£26bn) deal.
Tech giant Apple recently invested in Didi Chuxing. It also raised $600m from China Life.
The move comes after Uber bosses admitted they are losing more than $1bn a year in China.
“Funding their China dreams was becoming too expensive for Uber,” Duncan Clark, chairman of Beijing-based consultancy BDA, told the BBC.
“Many saw it as an obstacle to their own IPO (Initial Public Offering).”
“One thing to watch carefully is how quickly consumers feel the impact as subsidies are withdrawn,” Clark added.
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