Uber CEO Dara Khosrowshahi has said that the company is planning to sell its stake in Chinese ride-hailing company Didi, reported Reuters.
The US-based ride-hailing firm exited China in 2016 after it failed to make a breakthrough in the market and encountered fierce competition from Didi. Eventually, Uber sold its China operations to its local competitor in exchange for a stake.
Khosrowshahi also shared his sentiment on the Chinese market, saying that it has a “difficult environment with very little transparency.”
Uber recently reported profitability on an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) basis for the first time since its launch over a decade ago. The company, however, suffered from a drop in the value of its Didi stake.
Didi itself is facing scrutiny from local regulators over its data protection policies. Earlier this month, the Chinese ride-hailing firm announced that it would be delisting from the New York Stock Exchange.
See also: Grab shares may drop further as more stocks flood the market
Editing by Collin Furtado and Jaclyn Tiu
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
