This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/36938812
The article has changed 8 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Uber sells Chinese business to Didi Chuxing | |
| (about 1 hour later) | |
| Taxi-booking app Uber has agreed to sell its business in China to rival Didi Chuxing. | |
| Uber's China business will retain its separate branding, and Uber's global business will receive a 5.9% stake in the combined company, Didi Chuxing said. | |
| Uber China launched in 2014 but so far has failed to make any profit. | Uber China launched in 2014 but so far has failed to make any profit. |
| The two companies have been fierce competitors for years, but Didi Chuxing dominates the market. | |
| Didi Chuxing says it provides more than than 14 million journeys a day and claims to have 87% of the market share in China. | Didi Chuxing says it provides more than than 14 million journeys a day and claims to have 87% of the market share in China. |
| The company is backed by Chinese internet giants Tencent and Alibaba, and has also invested in Uber's rival US taxi-booking service Lyft. | The company is backed by Chinese internet giants Tencent and Alibaba, and has also invested in Uber's rival US taxi-booking service Lyft. |
| Big losses | Big losses |
| "Funding their China dreams was becoming too expensive for Uber," Duncan Clark, chairman of Beijing-based consultancy BDA, told the BBC. | "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)." | "Many saw it as an obstacle to their own IPO (Initial Public Offering)." |
| Uber has been struggling to break into the Chinese market despite having Chinese search engine Baidu as an investor. | Uber has been struggling to break into the Chinese market despite having Chinese search engine Baidu as an investor. |
| In February, the company admitted it was losing more than $1bn a year in China, spending huge sums to subsidise discounted fares. | In February, the company admitted it was losing more than $1bn a year in China, spending huge sums to subsidise discounted fares. |
| Didi Chuxing in brief: | Didi Chuxing in brief: |
| "One thing to watch carefully is how quickly consumers feel the impact as subsidies are withdrawn," Mr Clark added. | "One thing to watch carefully is how quickly consumers feel the impact as subsidies are withdrawn," Mr Clark added. |
| The fierce rivalry had led both companies to heavily subsidise their journeys. The merger is likely to see fewer such subsidies. | The fierce rivalry had led both companies to heavily subsidise their journeys. The merger is likely to see fewer such subsidies. |
| New rules | New rules |
| The deal with Didi Chuxing comes just days after China agreed to provide a legal framework for taxi-ordering apps. | |
| Both Uber and Didi have welcomed the decision, having previously operated in a legal grey area in the country. | Both Uber and Didi have welcomed the decision, having previously operated in a legal grey area in the country. |
| While the apps are widely popular, they have undermined business for normal taxis and have been met with protests by cab drivers. | While the apps are widely popular, they have undermined business for normal taxis and have been met with protests by cab drivers. |
| The new rules will take effect on 1 November and will, among other things, forbid such platforms to operate below cost. |