Uber to Sell China Business to Rival Didi After Losing Billions

Re:Uber to Sell China Business to Rival Didi After Losing Bi... by discodave on Monday August 01, 2016 @02:13AM (#12200502)

> Uber's China business was losing money before (I believe to the tune of about $1bn/year)

> I would conjecture that China was never a large part of Uber's valuation

These two statements are not exactly congruent. Investors in later funding rounds would have expected their investment to be used to grow the valuation. In other words, they were funding the losses in China so they should expect a return.... unless they were just investing in Uber due to FOMO.

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Re:Uber to Sell China Business to Rival Didi After Losing Bi... by rtpg on Monday August 01, 2016 @06:02AM (#12201225)

Here's a narrative:

"If we spend a billion in China now we'll make it!"

(Year later)

"Lots of competition but this time it's different!"

(Something something China)

"OK maybe this isn't working out. Let's salvage what we can"

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