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Does China exit signal the end of the road for Uber in India?

Didi Chuxing’s deal with its rival has paved the way for further truces in an industry bleeding cash from price wars

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Ride-hailing apps are big business. Photo: Xinhua

Since a battered Uber sold its business to rival Didi Chuxing in China last week , the ride-hailing sector in India has been abuzz with anticipation of a similar deal in Asia’s other giant market, where ride-hailing companies are reeling from an unending price war.

Industry sources say the fierce price war between the two top players – Ola Cabs and Uber India – has been bleeding the sector in India just as badly as the Didi-Uber rivalry in China, where Uber is estimated to have lost a billion dollars a year.

Last year, Uber said it would invest US$1 billion in India, mainly to battle Bangalore-based Ola, which was founded in 2011 and is valued at US$4.2 billion.

Industry trackers show Ola is the leading player in India with an estimated market share of 40 per cent, while Uber and Meru follow next with about 30 per cent and 15 per cent. Most of the rest largely play on the fringes, operating only in smaller cities.

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