Forbes, August 8, 2016
I co-authored this article with my colleague Edward Tse, CEO of Gao Feng Advisory Company
On August 1st, Didi Chuxing (Didi)and Uber China announced a plan to merge their businesses in China, effectively placing Didi in control of their combined ride-hailing business for the China market. This deal has attracted a great deal of attention since the announcement, raising a number of critical questions which we address in this article, including:
- Did the China government play any role in the merger?
- Can foreign tech companies compete in China?
- Did Uber China win or lose?
- Could Uber China ever have become a dominant player in China if it decided to press ahead?
- What will this deal mean to Uber and Didi’s global strategies?
China has become the epicenter of a disruptive wave of digital innovation, and the rapidly evolving landscape of partnerships for mobility services is a clear indication of this. For sure, we can look forward to even more exciting developments in the future.