Uber-Didi deal faces regulatory uncertainty

The nascent online car-booking industry in China went through a watershed moment, first with the government opting to legalize it on July 28, and two titans – Did and Uber – announcing plans to join forces a few days later. This unexpected marriage between once sworn enemies has left the industry on edge, as they wait to see whether China’s Ministry of Commerce would green light the union. In response to a Caixin query, Didi said August 1 that both Didi and Uber China have not turned a profit and, therefore, they don’t need government approval for the deal. However, the Ministry of Commerce, one of the country’s anti-trust regulators, said August 2 the merger “can’t proceed if they (the two companies) don’t apply for permission.”