It looks like ride-sharing giant Uber is finally merging its China operations with its local rival Didi Chuxing, that will give a clean finish to a brutal fight between the two clients for having good market share and subsequently obtain a fair ratio of user's trust in the planet's second-biggest economy.
The reports suggest that the collaboration will give Uber a 20 percent of shared offer in the joined firm and post the agreement, Uber will get an estimated value of USD 35 billion (generally Rs. 2,33,551 crores). One must take a note of the fact that both the organizations have turned down billions of dollars on its drivers, travelers, as well as on endless accusations being put to become more dominant in the potentially lucrative market.
The agreement papers have been designed in such a way that it gives Didi Chuxing an unchallenged control. The reports also indicate that by shedding its massive losses in the country, Uber will make a big difference on its financial status as it will clear a way to a great future for the company.
Though there is no official confirmation from the company's end, but supposedly blog post which is assumed to be written by CEO Travis Kalanick states that "I've learned that being successful is about listening to your head as well as following your heart. Despite investing in billions of dollars in China both companies were waiting to earn some profit there."
He further added, "Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term."
The reports come days after Chinese authorities declared new principles administering ridesharing concept, clarifying surprisingly that they may now work with full legal rights in the nation.
The new principles likewise said ridesharing platforms will be operating with some restrictions like they would be forbidden to work below cost that will restrict them to a certain extent to offer subsidies.
Didi Chuxing openly accepts to have a 90-percent of share in China and it openly claimed last month to raise USD 7.3 billion in one of the world's largest private equity financing rounds out of which USD 1 billion came from Apple.
As a part of latest deal Didi Chuxing is likely to invest USD 1 billion (nearly Rs 6,673 crores) in Uber that will make the U.S firm price valuation to reach an amount of USD 68 billion nearly equal to Rs 4,53,792 crores). Another point that needs consideration is that Uber is one of the world's most popular startups as it has expanded itself to more than 50 countries, however as it always happens, it did have to face some tough competitions from pre-established taxi services in most of the locations where it launched.
Also Read: Uber cab booking now possible via Snapdeal
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