Uber is teaming up with its biggest rival in China. Didi Chuxing announced on Monday that it’s set to buy Uber China in a deal that will include the company’s brand, business and all its data in the country.
The partnership follows an expensive battle between the two companies. Uber spent roughly $1 billion every year in China alone in an effort to overtake its rival, but Didi Chuxing refused to back down. The Chinese company offered special deals to both drivers and passengers while taking investments from Apple and other tech giants.
Once the deal goes through, Uber will get a 5.98 percent stake in the rival company, while Didi Chuxing will receive a minority equity interest in Uber. Didi Chuxing’s founder Cheng Wei will also join Uber’s board, and Uber CEO Travis Kalanick is set to join Didi Chuxing’s board.
“Didi Chuxing and Uber have learned a great deal from each other over the past two years in China’s burgeoning new economy, Cheng said. “As a technology leader deeply rooted in China, Didi Chuxing is constantly pushing the frontier of innovation to redefine the future of human mobility.”
Uber China will continue to exist in the country in an effort to maintain stability, at least for now. Behind the scenes, Didi Chuxing plans to integrate Uber’s technology and management into one cohesive company. Meanwhile, Uber can focus on other regions where it has an easier path to success. The company will walk away knowing it still has a stake in China, even if it’s not the end result Uber was hoping for.