Uber has agreed to merge its business in China with rival Didi Chuxing – the dominant ride-hailing company in the country.
According to Bloomberg, the $35 billion deal will see Uber China get a 20 per cent stake in Didi.
Uber has been struggling to break into the Chinese market despite having Chinese search engine Baidu as an investor.
Earlier this year, its CEO Travis Kalanick admitted the company was losing around $1 billion a year as it faced “fierce competition” from its rival.
The fierce rivalry had led both companies to heavily subsidise their journeys. The merger is likely to see fewer such subsidies.