In a statement released Monday, Uber CEO Travis Kalanick says this deal will make both companies stronger. "Uber and Didi Chuxing are investing billions of dollars in China and both companies have yet to turn a profit there," said Kalanick. "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." The deal also comes amid speculation from the technology industry community that Uber may have decided to do the deal because lavish spending in China has not yielded the desired results. Kara Swisher, a journalist for the technology news website ReCode, wrote Monday that "Uber knows when to fold them in China, after being engaged in an incredibly expensive ride war with Didi there." Get the full story at USA Today and The New York Times