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What Uber’s China Deal Says About the Limits of Platforms

Harvard Business

On August 1 Uber announced that it is selling its Chinese brand and operations to Didi Chuxing for $1 billion, its annual burn rate in that market, in exchange for a 20% stake in the local competitor. At the company level there is general agreement that the merger for (near) monopoly will benefit both Uber and Didi Chuxing by increasing the profit pool in the Chinese ride-hailing market, but there’s some disagreement on whether this was Uber’s plan from the beginning.