AfterDawn: News

Uber is getting killed trying to compete with Didi in China

According to Uber CEO Travis Kalanick, the company is losing a billion dollars a year trying to compete against rival Didi Kuaidi in China.

Uber's China business is valued at $8.2 billion, but the ride-hailing service has yet to make a cent of profit thanks to intense price wars in mainland China.



"We're profitable in the USA, but we're losing over $1 billion a year in China," added Kalanick. "We have a fierce competitor that's unprofitable in every city they exist in, but they're buying up market share. I wish the world wasn't that way."

Didi is backed by Chinese tech giants Tencent and Alibaba, both of which are subsidizing fares in order to gain as much market share as they can.

Source:
Reuters

Written by: Andre Yoskowitz @ 20 Feb 2016 22:24

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• 1 comment

• hearme0

  Soooooo............PULL THE FU*K OUT UBER!!!!!!!!!!!!!!!!
  
  Dumb CEO! Not the brightest bulb in the box. He conjured a great idea and capitalized on it. Now the goof is trying to compete in China with all those shady-assed, thieving and hacking Chinese?!?!?!?!?
  
  First off, why would you enter that market knowing how it is?
  
  Second, knowing the competition from loser companies such as Alibaba, selling and scamming off every buyer, why would Uber even try to compete in a marketplace that is UNPROFITABLE AS IS due to competition?
  
  Love the Uber idea but the people that invent this stuff ride a wave that eventually just becomes too big for them. Travis Kalanick is an unqualified moron! Uber will operate just fine, if not better when the CEO is removed from this planet.

  21.2.2016 11:03 #1