Bad news for rickshaw operators in China. The government has been paid off enough to permit Uber to merge with China’s largest ride hailing service, dubbed Didi Chuxing.
The combined entity will be valued at $35 billion, providing Uber will a government blessed stranglehold on app generated livery services in the country. Uber will receive a 20% stake in the combined entity and Didi will make a $1b investment in Uber at an absurd $68 billion valuation. Numerous other companies will attain stakes in the joint merger, including Baidu.
“As an entrepreneur, I’ve learned that being successful is about listening to your head as well as following your heart,” Travis Kalanick, chief executive officer of Uber, wrote in a blog post obtained by Bloomberg. “Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there. 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.”
No word on how many Chinese politicians and generals have attained stakes in this newly formed monopoly.
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What a minute. Did not just some one buy a stake? A certain homo maybe.
We are fucked.
Have fun being an Uber driver in China where the streets are littered with people and bicycles everywhere.