Uber and Didi ChuXing announced their merger in China – Hipertextual

The subsidiary of Uber in China merges with Didi ChuXing to create a giant transport.

After the Chinese regulators autorizasen operations services Uber and Didi ChuXing, making their services in legal and protected by the government, the Chinese subsidiary of Uber and Didi Chixing have announced a merger to become the authentic Chinese transport giant, giving a major blow to the cab in china sector.

most interesting thing is that the merger of the two companies will end the war that was developing between the two in terms of price, in a way, was degrading to the industry private car services in China. Now, with the merger, which will get a new company with a value of EUR 30,000 million , the rules of the game in the region will change, getting serious barriers to entry to potential competitors and it running as the alternative to taxis and even private transport in China.

it is expected that this merger, together with the regulatory change that comes into force in November , allow

both companies put their bottom in green, after a long price war in which both companies have recognized that its actions to attract users and falling prices have not allowed them to profit in the region.

in addition, the merger between the two companies can open the door to Uber reach more agreements with more companies in other countries where regulators are holding back its operations. Now, with the merger between MyTaxi and Hailo, which certainly increased competition Uber in Europe , merging with other alternatives to deal with it is new giant taxi can open the door to Uber for take more force towards European regulators.

Recommended