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Uber Sells Its China Operations to Rival Didi Chuxing

Eric Newcommer and Selina Wang, reporting for Bloomberg:

Uber Technologies Inc. is selling its China operations to fierce rival Didi Chuxing, ending an expensive price war and freeing it up to focus on other markets and possibly an initial public offering.

The truce brings to an end a bruising battle between the two companies for leadership in China’s fast-growing ride-hailing market. Uber has already lost $2 billion in China in two years there, people familiar with the matter have said, prompting investors to pressure the company to cut a deal. As part of the arrangement, Didi will invest $1 billion in Uber’s global company, people familiar with the matter said.

Worth noting: Didi is the company in which Apple invested $1 billion back in May.

Monday, 1 August 2016