Uber's Chinese rival acquiring company's China operations
BEIJING (AP) — Uber Technology Ltd. is turning over its China operation to its main local competitor in a deal that links the former rivals following a costly battle to attract riders.
Foreign technology brands have struggled in China's populous but intensely competitive market.
In June, Wal-Mart Stores Inc. sold its Chinese online operation to JD.com Inc., the country's No. 2 e-commerce service.
Didi was formed by the February 2015 merger of competing ride-hailing services launched by Chinese Internet giants Tencent Holdings Ltd. and Alibaba Group following a similar battle for customers.
Monday's announcement came after the Chinese government on Thursday announced its first rules for the ride-hailing industry, confirming its legal status after repeated run-ins with regulators.
The company said in June it raised $7.3 billion from investors in what it described as one of the world's largest private equity funding rounds.