Why Uber Couldn’t Crack China
— August 7, 2016
By Robert Salomon
In exchange for its China operations, Uber will receive a 20% minority stake in Didi and a $1 billion equity investment from the Chinese firm. Although additional financial and operational details are still emerging, the sale of Uber China to Didi is a clear indication that Uber has given up on its ambition to conquer the Chinese ride-sharing market.
Uber CEO Travis Kalanick had previously suggested that he was not worried about the company’s losses and slow start in China, yet Uber’s shareholders felt otherwise. Increasingly troubled by Uber’s seemingly interminable difficulties in China, they pressured Kalanick to cut his losses and move on.
See the full article is published in Fortune.
Robert Salomon is an Associate Professor of Management and Organizations.