Uber: Lost Chiina war, spinning its way to victory

In China on 03/08/2016 at 3:42 pm

The battle for ride-sharing in China is over. Didi Chuxing plans to buy Uber China. After spending tens of millions of dollars every month fighting for market share, the two companies will combine into a new one worth about $35 billion.

“I’ve learned that being successful is about listening to your head as well as following your heart,” Travis Kalanick, Uber’s chief executive blogged, adding “Uber and Didi Chuxing are investing billions of dollars in China and both have yet to turn a profit there.”

Bloomberg, said that Uber had lost more than $2 billion in China.

Investors in Uber China will receive a 20% stake in the new company and Didi will make a US$1 billion investment in Uber Global.

After the deal Uber passengers were going on Weibo, China’s version of Twitter, to complain that the cost of regular routes previously taken had risen steeply. One said it had doubled as Uber discontinued its subsidies. FT had earlier this week reported that Didi had in the last month quietly raised fares.

The Uber victory spin is as follows:

[O]ne of Uber’s biggest investors and strategic advisers, Bradley Tusk, the chief executive of Tusk Ventures ,,,


Mr Tusk insists though that Uber got the best out of a bad situation. The American ride-hailing app was losing a billion dollars a year in China, and this new deal sees Uber owning a 20% stake in the merged company.

“Uber invested $2bn in China, and ended up with a $7bn stake in Didi,” says Mr Tusk. “That’s not a bad deal if you look at it like that.”


But is the valuation of Didi real? @0% of zero is zero.

But Americans are the master of BS.

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