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China: Uber leaving the country?

By  |  August 1, 2016

Uber Technologies Inc. is selling its China operations to fierce rival Didi Chuxing, ending an expensive price war and freeing it up to focus on other markets and possibly an IPO.

Uber has stated that it gains profits in the U.S. and Canada, but suffering losses in developing markets have undercut that hard-fought progress. The huge losses in China have been one of the main issues holding up Uber’s potential IPO, according to people familiar with the matter.

Didi is buying Uber’s brand, business and data in the country, the Chinese company said in a statement. Uber Technologies and Uber China’s other shareholders, including search giant Baidu Inc., will receive a 20 percent economic stake in the combined company. Didi founder Cheng Wei and Uber Chief Executive Officer Travis Kalanick will join each other’s boards.

Full Content: Bloomberg

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