Here’s how Uber’s merger with Didi Chuxing will impact its business in India

San Francisco-based Uber has decided to merge its China business with arch rival and market leader Didi Chuxing. By this merger, one can expect that India would now become the focus of the ride-hailing app, which is on a global expansion spree.

As per the deal, China continues to be a tough market for US-based companies, but it could give the American company more leverage so that it can devote more of its resources to India.

Also read: Here is what global rivals Uber and Didi have in common

"India is the next battleground," an industry insider told ET. "Uber is out of China, which means their ability to invest in India goes up 2x-3x," he added.

Talking of its India business, Uber has direct competition from Ola, in which Didi is a shareholder.

"This merger paves the way for our team and Didi's to partner on an enormous mission, and it frees up a substantial resources for bold initiatives focused on the future of cities -- from self-driving technology to the future of food and logistics," said a statement from Uber CEO Travis Kalanick.

After the merger, the valuation of their combined entity will be $35 billion.

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