Uber sells Chinese operations to Didi Chuxing

Uber sells Chinese operations to Didi Chuxing

Uber has agreed to sell its Chinese business to rival Didi Chuxing.

The taxi-booking app will retain separate branding in the country, with Uber also taking a 5.9 per cent stake in the combined company.

Didi Chuxing - which is backed by internet giants Tencent and Alibaba - dominates the taxi-booking sector in China with nearly 90 per cent of the market.

In a statement Cheng Wei, chief executive of Didi Chuxing, said the two companies had learned a great deal from each other over the past two years.

He added the deal would “set the mobile transportation industry on a healthier, more sustainable path of growth at a higher level”.

Uber China launched in 2014 but so far has failed to make any profit, revealing earlier this year it was losing more than $1 billion a year in the market.