Despite successes almost everywhere it has set foot, the global taxi company Uber has given up its operations in China for a minority stake in the country’s taxi company; Didy Chixing technology co.
Didy which was worth about 28 billion dollars, will be worth around 36 billion dollars now.
The merger makes Uber the highest shareholder in Didy technology co as Uber china will reportedly take up 20% in shares and also it means didy will invest a billion dollars in Uber as part of the deal.
This is another example of another US firm trying unsuccessfully to put a foothold in the local market in China.
Uber and diddy, which have been bitter rivals would end up having their executives swap positions as Uber chief executive Travis Kalanick will join Didy’s board, while Didy founder Cheng wei will join uber’s board as part of the deal.
Despite starting operations in china in 2012 before Didy, Uber was still unable to attract customers like didy.
This just shows how good the Chinese are at promoting local businesses.