[Bogdanovich]

From bbc.com:

"The deal with Didi Chuxing comes just days after China agreed to provide a legal framework for taxi-ordering apps. Both Uber and Didi have welcomed the decision, having previously operated in a legal grey area in the country. While the apps are widely popular, they have undermined business for normal taxis and have been met with protests by cab drivers. The new rules will take effect on 1 November and will, among other things, forbid such platforms to operate below cost."

New regulation prohibits ride subsidizing. Meaning no way for Uber to increase its market share by subsidizing rides after November 1st.

[snaky]

Wait for suddenly and unexpectedly these regulations will be pulled off after the deal.

[jpatokal]

Why would Didi need to subsidize to below cost if they don't have Uber to compete against? They already have a 87% market share.

[Bogdanovich]

This regulation was probably a good reason for uber to sell its business as it protects didi's market share