Uber has for years been the ultimate global disruptor, besting competing taxi services around the world. However, it's now closing up shop in China after struggling to turn a profit in the populous nation.
The company's Chinese business will be sold to local rival Didi Chuxing, according to a report from Bloomberg. Uber will own a 20 percent stake in the $35 billion combined company, reports the publication.
A post to Weibo (China's Twitter) by Didi Chuxing confirms the news (in Chinese).
"Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there," wrote Uber CEO Travis Kalanick in a blog post Bloomberg obtained. "Getting to profitability is the only way to build a sustainable business that can best serve Chinese riders, drivers and cities over the long term."
Uber and Didi Chuxing were reached for comment but did not immediately respond.
While the company is backing out of China, it's still aggressively expanding elsewhere. It'll reportedly be spending $500 millionto reduce dependence on Google Maps. It's also bolstering its UberEats project, and following its limited launch in the US.
The company, formerly dubbed the world's most valuable startup, currently has a valuation of $68 billion.
While it will now own a 20 percent stake in Didi Chuxing, that share is split with companies Uber partners with in China, like Baidu.
Update, 7:43 p.m. AEST: Added Weibo confirmation from Didi Chuxing.