Arch-Rivals Didi Chuxing and Uber Deny China Merger Report
Yicai Global
/SOURCE : Yicai
Arch-Rivals Didi Chuxing and Uber Deny China Merger Report

(Yicai Global) July 22 -- Both Didi Chuxing and Uber Technologies Inc. have denied a report that they are in partnership talks aimed at stemming losses from their cut-throat rivalry in China's rapidly expanding ride-hailing sector.

"We do not have such plans, nor do we comment on market rumors," a spokesperson for Beijing Xiaoju Technology Co., operator of Didi Chuxing, told Yicai.

Ms. Liu Zhen, senior vice president of Uber China, has also told Yicai that the rumor is untrue.

This is in response to an article published in Bloomberg News yesterday citing people familiar with the matter. The report states that investors in Uber and Didi Chuxing have begun discussing a potential merger. An Uber investor told the newspaper that he had held more than ten meetings and calls with Didi Chuxing shareholders in favor of such a move.

Uber CEO Travis Kalanick said in February that the San Francisco-based company is losing USD1 billion a year competing with Didi Chuxing, which itself also lost an estimated USD1 billion last year.

 

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