Uber Gives Up on China, Sells Operations to Didi Chuxing
Sometimes, the global market disrupts you. Uber’s been trying to establish itself in China for three years, but never made a profit — and now it’s reportedly cut a deal with the much-larger homegrown rival ride-hailing app. Uber’s local operations will go to Didi in exchange for a $1 billion investment and a 20 percent stake in the Chinese company. China’s just legalized ride-hailing apps — and will institute new regulations in November forbidding below-cost pricing, which may have spurred the deal.