Taxi Wars: Uber in China

Case Solution

Srinivas K. Reddy, Zack Wang Zheng, Sarita Mathur
Singapore Management University ()

The case describes how Uber, the mobile driver service provider, entered China in July 2014 and was forced to sell its stake and leave the country two years later, following stiff competition from local players. Before Uber’s entry, China’s key players Didi and Kuaidi had fought fiercely to attract both drivers by offering deep discounts and subsidies. To compete with the two local players, Uber has signed a strategic partnership with Baidu, one of the largest internet companies in China. Soon after, Didi and Kuaidi merged into a formidable monopoly competitor to Uber, which controls nearly 95% of the transportation business. Uber’s future in China looked bleak. It has lost more than a billion dollars annually in China since it entered the market. Amid fierce competition and recurring losses, Uber sold its stake in August 2016 and left China to expand and increase Uber’s market share in Asia.

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