(ECNS) -- Chinese ride hailing service Didi Chuxing has announced its acquisition of Uber's China unit.
According to the deal, Didi Chuxing and Uber Global will be cross-shareholders, with the latter holding 5.89 percent of Didi stocks.
Didi Chuxing founder and CEO Cheng Wei will join Uber Global's board of directors while Travis Kalanick, chief executive officer of Uber joins Didi Chuxing's counterpart.
"Cooperation with Uber will help the ride hailing sector develop in more healthy and advanced ways," Chen said.
He added that Didi Chuxing and Uber have competed and learned from each other over the past two years.
The Chinese ride hailing service provider aims to explore the international market, especially in newly emerging economies.
Kalanick said "Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there. 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," according to a blog post cited by Bloomberg.
