China’s Didi Chuxing and Uber have now both confirmed that Didi has agreed to buy Uber’s separate business in China — Uber China — as a path to trying to get the two unprofitable on-demand transportation businesses into the black. The deal had been heavily speculated earlier today.
The two companies will retain distinct brands, app and business operations, and it sounds like the backends will be merged. Didi said it will “integrate the managerial and technological experience and expertise of the two teams.”
Didi’s explanation of the financials notes that Uber will be given a 5.89 percent stake in the newly merged entity, with preferential equity that is equal to a 17.7 percent economic interest in Didi Chuxing.