After the merger of Uber’s China unit with Didi Chuxing, the largest ride-hailing service in China, India may become for Uber what it is for another American tech giant, Amazon: a market it cannot afford to lose.
Uber, the world’s most valuable start-up, will merge its China unit with Didi Chuxing in a deal likely to be announced on Monday, according to Bloomberg and other websites. The combined entity will be valued at $35 billion and Didi will also invest $1 billion in Uber’s global entity at a valuation of $68 billion, according to the report.
A merger of Uber China and Didi will present an awkward scenario for Ola, India’s largest cab-hailing service. Didi is already a strategic investor in Ola (promoted by ANI Technologies Pvt Ltd); the Chinese company participated in a $500 million funding round into Ola late last year.