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Uber to Sell China Business to Rival Didi After Losing Billions

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Re: Uber to Sell China Business to Rival Didi After Losing Billions

#171

Post by snaky »

kesselvon wrote: post #145
snaky wrote: post #50

Jean Liu, the president of Didi, is the daughter of Chinese businessman and Lenovo founder Liu Chuanzhi, and the granddaughter of Liu Gushu, a senior executive banker at the Bank of China. Travis Kalanick is not.

Hard to compete when the government interferes in favor of your competitor. Many western companies investing or competing in China don't realize how stacked the cards are against them. Either you're left with a very tiny share of the market, or your joint Chinese partners are going to plunder your IP and start undercutting your business.

While investors are willing to pay real money for the slide "Our Growth in China is So Amazing!", life is good for Travis and others.

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#172

Post by Bogdanovich »

jpatokal wrote: post #144
snaky wrote: post #128

Earlier quoted context omitted.

Wait for suddenly and unexpectedly these regulations will be pulled off after the deal.

Why would Didi need to subsidize to below cost if they don't have Uber to compete against? They already have a 87% market share.

This regulation was probably a good reason for uber to sell its business as it protects didi's market share

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#173

Post by marme »

kesselvon wrote: post #145
snaky wrote: post #50

Jean Liu, the president of Didi, is the daughter of Chinese businessman and Lenovo founder Liu Chuanzhi, and the granddaughter of Liu Gushu, a senior executive banker at the Bank of China. Travis Kalanick is not.

Hard to compete when the government interferes in favor of your competitor. Many western companies investing or competing in China don't realize how stacked the cards are against them. Either you're left with a very tiny share of the market, or your joint Chinese partners are going to plunder your IP and start undercutting your business.

people dont understand how much this was happening to uber. Police were actively stop uber drivers and fining them for operating as illegal taxi while not stoping any didi kuaidi drivers. In some cities they even had uber banned by the local government with threats of arrest for anyone who drove for uber in the city while allowing didi kuaidi to operate. There has been so much kick back and inside dealing by didi kuaidi that uber never had a chance

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#174

Post by fullshark »

sudoscript wrote: post #3

I can't tell if this is a good deal for Uber investors or not. As I understand it, Uber will own a 20% share in the combined company. The combined company is valued at $35 billion, so Uber's share of the value will be $7 billion (actually less, since they also need to share it with Baidu which invested directly into Uber China too). $7 billion doesn't sound too bad as an exit. However, if Uber's China business is wor…

Looks like a good deal to me because continuing to fight Didi in China was a losing proposition. Also they now own 20% of the dominant chinese ride hailing company.

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#175

Post by mbesto »

a_small_island wrote: post #57
germanier wrote: post #49

Earlier quoted context omitted.

So this list means that there is no antitrust law in the US? Because I count twice as many American as Chinese companies on that. https://en.wikipedia.org/wiki/List_of_largest_companies_by_r... Fact is, China has monopoly and merger control laws.

I think mbesto's list was supposed to highlight the fact that a large number of China's top companies are state owned.

Exactly, sorry to the parent if that wasn't obvious. When you have state controlled entities (and very large ones in energy, utilities, etc), then the idea of antitrust laws is laughable.

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#176

Post by jddanforth »

How did Uber get 17.7% of Didi (88% of Uber China shares) if they didn't own more than 50% of Uber China to begin with? Also, it was reported that Uber got 17% of economic interest, but only 5.89% of full equity? I assume the rest of the 17% was non-voting shares?

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#177

Post by brianbreslin »

snaky wrote: post #72
perlwle wrote: post #70

Earlier quoted context omitted.

Another fun fact: Jen Liu, Uber’s China head of strategy, is the niece of Lenovo founder Liu Chuanzhi.

Good old state-sponsored family business. It's called Chaebol (재벌) in Korea, Zaibatsu (財閥) in Japan, is there a name for it in modern China?

I thought in Japan it was called a Keiretsu[1] ? Samsung would be consider a Chaebol right?

[1]https://en.wikipedia.org/wiki/Keiretsu

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#178

Post by ithinkinstereo »

oldmanjay wrote: post #162
snaky wrote: post #127

Earlier quoted context omitted.

The most sneaky US lobbyst is a naive child comparing to any Chinese small village chief.

Is that how they keep winning anywhere they don't have total control?

I don't get these comments. The growth of large Chinese MNCs is just getting started.

People said the same thing about Korean companies and Japanese companies.

The Chinese will continue to push into international markets and will grow to be incredibly competitive with western corporations.

Really naive to think otherwise...

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#179

Post by xbeta »

So much for "disruption" in startup ideology, but I guess it is China that starts bring them back to reality. This is China, nothing is fair even you optimistically believe it to be.

I'm not sure what's the fantasy on China. I'd personally prefer winning the 6b population markets over the 1.3b.

Sure, it takes time, but in a long run it is more sustainable. But obviously in a startup world, a sustainable business without the hyper-growth is not much valued.

Re: Uber to Sell China Business to Rival Didi After Losing Billions

#180

Post by snaky »

brianbreslin wrote: post #177
snaky wrote: post #72

Earlier quoted context omitted.

Good old state-sponsored family business. It's called Chaebol (재벌) in Korea, Zaibatsu (財閥) in Japan, is there a name for it in modern China?

I thought in Japan it was called a Keiretsu[1] ? Samsung would be consider a Chaebol right? [1] https://en.wikipedia.org/wiki/Keiretsu

The difference between Zaibatsu and Keiretsu is how much the state is involved. After MacArthur's attempt to demolish Zaibatsu completely, they found a way to reorganize with almost no state involvement as Keiretsu. These days, after half of the century, Japanese pretty much recreated all the things MacArthur killed - from Zaibatsu to ultra-nationalism as government ideology [1]

Samsung, Daewoo, Hyundai - pretty much any big Korean firm is Chaebol.

[1] http://www.thedailybeast.com/articles/2016/07/10/does-this-r...

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