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Uber has for years been the ultimate global disruptor, besting competing taxi services around the world. However, it may soon concede defeat in China.
The company's Chinese business will be sold to local rival Didi Chuxing, according to a report from Bloomberg. Uber will own a 20 percent stake in the $35 billion combined company, reports the publication.
"Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to tu a profit there," wrote Uber CEO Travis Kalanick in a blog post Bloomberg obtained. "Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term."
Uber and Didi Chuxing were reached for comment but did not immediately respond.
While the company is backing out of China, it's still aggressively expanding elsewhere. It'll reportedly be spending $500 million to develop its own mapping system to reduce dependence on Google Maps. It's also bolstering its UberEats project, bringing the app to Australia and London following its limited launch in the US.
The company, formerly dubbed the world's most valuable startup, currently has a valuation of $68 billion.
While it will now own a 20 percent stake in Didi Chuxing, that share is split with companies Uber partners with in China, like Baidu.
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