Uber has given up the battle to capture the Chinese market alone. Today, Uber opted for a minority stake in Chinese ridesharing service, Didi Chuxing. The combination of and Uber and Didi, will create a new entity, combining Uber China’s valuation of $7B with Didi’s approximately $28B, creating a $35B market cap company. The new entity will keep the Uber name however.
Didi Chuxing is the same company that Apple ( NYSE: AAPl) decided to invest $1Billion in, just three months ago. The move by apple was to better understand the Chinese market. Apple’s investment also gave the company insider knowledge on electric and autonomous car technology, as Apple reportedly prepares to enter the car industry with its open secret “project titan”.
The move is said to position Uber for its long awaited IPO. The deal is to be formally announced sometime this week.