Just a year ago, Travis Kalanick told anyone who would listen that China was Uber Technologies Inc.’s most pivotal market. He’s now waved the white flag.
Uber is about to join a lengthening list of U.S. companies that have stumbled in the world’s largest internet market, from Yahoo! Inc. and Amazon.com Inc. to Ebay Inc. and Microsoft Corp. It’s capitulating via a deal that will see arch-foe Didi Chuxing buy out its local business to create a $35 billion Chinese ride-share leader, according to people familiar with the matter. Uber and its backers will be left with about a 20-percent economic stake in the enlarged local player, Didi said.