The future of Uber China after it merged with Didi Chuxing

The future of Uber China after it merged with Didi Chuxing

 

The war between Uber and Didi Chuxing, the two biggest competitors in the domain of china’s ridesharing app, ended by agreeing to merge on August 2016. Someone thought that Didi won in this war and someone thought it’s a win-win game. So, how about the future of Uber China after it merged with Didi Chuxing?

As the originator of ridesharing app, Uber launched services in San Francisco in 2010. In 2013, Uber began to operate in Shanghai. On March of 2014, Uber declared formally the entrance in China’s market. Beijing became the hundredth city who use Uber in the word, and in 2015, after about 100 days of the entrance of Uber in Chengdu, it became the city who own the order quantity the most mass in the word, even exceed the New york.

 

In the last 4 years, Uber and Didi Chuxing have provided a lot of subsidies and discounts to customer and drivers for occupying the market, Uber lost about $1 billion every year, and Didi even more. Finally, this cut-price fare war ended by the selling of Uber China Operations to Didi Chuxing.

 

Four months after this selling, a new app called “Uber China” goes online, but this app can’t be paid by foreign credit card and it can’t be used outside of China because of the problem of the cross-border legal rights coordination, Didi said that they will resolve this problem but they need more time, and they will launch a new app with more features next year.

 

However, the actual situation of Uber China is not upbeat. Costumers complain that the number of drivers decreases and they have to wait a long time to find a driver, at the same time, the drivers complain also that the number of customers decreases, and because of the end of a cut-price fare war, there are fewer subsidies, these earning is decreasing accordingly.

 

The localization of international product in China is very difficult all the time, Uber China should try harder in the future to occupy the market.

 

 

 

A propos de Xiaoying LIU

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