Didi Kuaidi to Acquire Uber's China Unit
Didi Kuaidi, 8/01/16
Xiaoju Kuaizhi Inc ("Didi Kuaidi"), operator of Chinese mobile taxi booking and car hire apps Didi Chuxing and Kuaidi Dache, today announced a strategic agreement with US ridesharing firm Uber under which Didi Kuaidi will acquire all assets of Uber's China business, including its brand, business operations and data, for operation within mainland China.
In exchange for the Uber China assets, Uber will receive 5.89% of the combined company with preferred equity interest which is equal to a 17.7% economic interest in Didi Kuaidi. In addition, internet company Baidu (Nasdaq: BIDU) and other Chinese shareholders of Uber China will receive a 2.3% economic interest in Didi Kuaidi. Under the agreement, Didi Kuaidi will also obtain a minority equity interest in Uber. Cheng Wei, founder and chairman of Didi Kuaidi, will join the board of Uber. Travis Kalanick, founder of Uber, will join the board of Didi Kuaidi. Additional terms were not disclosed. With this transaction, Didi Kuaidi becomes the only company with common investment from Chinese internet giants Tencent (0700.HK), Alibaba Group (NYSE: BABA) and Baidu.
Under the agreement:
- Uber China will maintain independent branding and business operations to ensure stability and continuity of service for passengers and drivers;
- Didi Kuaidi will integrate the managerial and technological experience and expertise of the two teams, to meet China's transportation demands with more value-added solutions;
- Didi Kuaidi will work with regulators, peers and stakeholder groups to continue educating the market to build a healthy environment in support of the growth of China's mobile internet industry and the nation's economic development program; and
- Didi Kuaidi will continue to work with global partners in connecting local resources to create the best possible cross-border ridesharing experience for their users.
Keywords: ridesharing wireless Kuaidi Dache Cheng Wei Uber Xiaoju Kuaizhi Travis Kalanick Didi Kuaidi Didi Chuxing M&A car hire app taxi booking app HR
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