Uber and Didi Call a Truce In China With a $35 Billion Deal (recode.net)

Kara Swisher, reporting for Recode: Uber, which has been spending hugely in China over the last two years, has folded, striking a deal in which it will merge its Chinese operations with its main rival there, Didi Chuxing. Under terms of the deal, Uber China, the ride-hailing company's Chinese subsidiary, will be part of a larger Didi company valued at $35 billion. Uber gets a 20 percent stake in that -- Didi's previous valuation was $28 billion. That's a $7 billion value for upward of $2 billion that Uber has frittered away, um, spent there. In turn, Didi will invest in Uber at a valuation of almost $70 billion. That was about the value of Uber's last round. Now, everyone owns everyone everywhere.

Comments

Re:Uber not so great as a whole

[AvitarX]

As someone in a smaller market, the cost is a very minor part of Uber.

There's also the fact that I can actually get a ride.

I've waited 90 minutes for a cab, while Uber in the same location same time of night is always under 10.

I'd happily pay 25% more than cabs for Uber (and when there's surge pricing I often pay more than that even), cabs aren't worth it (in Philadelphia outside of center city, in northern Delaware, and in New Orleans. In San Fransisco, I'd use the Uber app, but often just to hail a cab.)