Uber Technology Inc plans to sell holdings in non-strategic assets such as its stakes in Didi, criticizing China for lack of transparency, according to a report by Reuters on Wednesday.
- The U.S. firm stopped operations in China in 2016 after incurring costs of more than one billion dollars a year due to price war with Didi.
- The competition forced the company to sell its China operations to Didi in exchange for an equity holding.
- A June filing by Didi disclosed that Uber owns 12.8 per cent of the company.
- Dara Khosrowshahi, Uber Chief Executive stated that they believed their Didi holding was not strategic due to the difficulties of operating in China.
- Khosrowshahi further stated that the company was not looking to sell the shares immediately.
Several companies that Uber has a stake in have gone public and their shares are subject to a lockup duration. Uber Chief further stated Uber would continue to hold some holdings for strategic reasons.Didi up +0.32%, UBER up +0.51%, pre-market trading.