Baidu, Uber partner up

Chinese search engine giant Baidu announced on Wednesday it has bought a stake in Uber, a controversial US-based taxi app.

The companies did not disclose the funding amount, although Chinese media reported last week it would be $600 million (480 million euros). The deal was struck at Baidu's headquarters in Beijing at a "signing ceremony" by executives, including Uber CEO Travis Kalanick.

"This collaboration marks a milestone for Uber," Kalanick said in a prepared statement. "Our partnership with Baidu - a premier global brand - reflects our commitment to the region and the growing community of Uber riders and driver-partners here."

The two companies said they would collaborate to expand Uber's presence in China, connecting Baidu's map and mobile-search functions with Uber's services. The country is currently dominated by two domestic car-hailing apps Kuaidi Dache and Didi Dache, backed by Baidu's rivals Alibaba Group Holding and Tencent Holdings, respectively.

In 2013, China had around 18 million taxi app users - a figure that is set to rise to around 45 million by 2015, according to Chinese internet consulting group iResearch.

Cloud of controversy

Uber has been embroiled in a few controversies the past few weeks, including full or partial bans in India, Spain, Thailand and France.

Local government officials in Delhi prohibited the app after one of Uber's drivers, who has a past record of sexual assault, had allegedly raped a 25-year-old finance professional.

France banned Uber amid fierce resistance and protests from the country's taxi drivers over rideshare apps.

The service has also seen regulatory challenges in Germany and in the US, where a driver in San Francisco was charged in an accident leading to the death of a six-year-old girl.

On Tuesday, Belgian authorities ordered a probe into the company's tax affairs. Officials in Brussels are also pushing forth efforts to ban the service outright.

el/uhe (AFP, Reuters, dpa)