Uber is bowing out in China.
The San Francisco-based ride-hailing company is letting its Chinese operations merge with its main rival in that region –– Didi Chuxing.
The new, combined company is expected to be worth $35 billion, and Uber China will still own roughly 20 percent of the operations. That seems like a pretty good deal, since it was only controlling, at most, 20 percent of the ride-hailing market there.
Plus, Didi is going to make a $1 billion investment in Uber's other, more profitable operations.
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Uber has reportedly lost $2 billion in China already and was spending about $1 billion each year trying to capture more of the market.
Meanwhile, Didi formed a partnership with Uber's American rival, Lyft, and received a major investment from Apple –– despite the fact that Uber's and Apple's CEOs are said to be friends.
China just legalized app-based ride-hailing services last week. The merger is still waiting on approval from China's government.
This video includes clips from Uber, Lyft, CCTV and France 24. Music provided courtesy of APM Music.
