World Economy

Didi Overtakes Uber

Didi Overtakes UberDidi Overtakes Uber

China ride-hailing service Didi Chuxing’s dominance of Uber Technologies Inc in the China market may provide a play book for other regional rivals to fend off the biggest US ride-hailing company, especially in other Asian countries, Reuters reported. The two companies on Monday confirmed the sale of Uber China to its chief competitor, ending a two-year, money-losing effort to break into one of the world’s toughest markets. Uber leaves with a major stake in Didi-about a fifth of the combined company-but will give up control of its China operations. Didi had a head-start and maintained the lead on Uber with a strategy that other rivals may emulate, analysts and investors said. Didi counts two of the most powerful, best capitalized Chinese Internet companies as backers; has tight connections with local government; made an ally of local taxi drivers and expanded into services such as buses that Uber ignored; and exploited its knowledge of local culture and consumers. Uber declined to comment.