It Takes Two.docVIP

It Takes Two 　　They have been at loggerheads over fares for years， but now a white flag has been waved across the ride-hailing market in China. Didi Chuxing and Uber have finally agreed to bury the hatchet ending their costly fight for the largest on-demand transportation market in the world. 　　Didi Chuxing， or Didi for short， is a homegrown juggernaut resulting from the merger of two Chinese ride-hailing companies―Didi Dache and Kuaidi Dache―in 2015. Uber， meanwhile， is the leading ride-hailing service in the United States and much of the world， except for China， where it has been a bleeding ground for the Silicon Valley-based startup. 　　On August 1， Didi announced that it will acquire Uber’s brand， business operations and data in China. After the deal is completed， Uber will get 5.89 percent of the newly united company with “preferred equity interest，” equal to a 17.7-percent economic interest， while other shareholders of Uber China will receive a 2.3-percent economic interest in the new company， according to a statement from Didi. It also said that Uber China will keep its independent branding and business operations to ensure the stability and continuity of the service for passengers and drivers. 　　The valuation of the combined operation stands at $35 billion， made up of Didi’s latest$28 billion valuation and $7 billion value for Uber China， according to B， citing people familiar with the matter. 　　Under the deal， Didi will also obtain a minority equity interest in Uber， which operates globally outside China. But Didi did not disclose the stake it will take in Uber. 　　The tie-up follows China’s legalization of ride-hailing services. Previously， firms like Didi and Uber had operated in a gray area in the country， as there is a law against using private cars to offer paid rides. 　　China’s first nationwide regulation on on-demand transportation services was unveiled on July 28， granting legal status to the industry. The regulation requires car-hailing pl