Didi fought Uber in China and was able to gain dominance in the Chinese ridesharing market through several competitive advantages. After fierce competition that led to over $1 billion in losses for both companies, Didi acquired Uber China in 2016 in a $35 billion deal. This effectively ended Uber's challenge to Didi in China and confirmed Didi as the dominant ridesharing platform in the country. Now, Didi is looking to expand globally and take on Uber internationally as the two companies vie for leadership in the global ridesharing industry.
In-Depth Integrative Case 4.1 How Didi Fought Uber in China LizbethQuinonez813
In-Depth Integrative Case 4.1
How Didi Fought Uber in China and Won; Next, Taking On the
World
Introduction
Technology is constantly evolving, and firms who have leveraged the unprecedented growth
rate of modern innovation have seen quick success. Didi Chuxing, China’s largest ridesharing
servicer, is no exception. With roots dating back to 2012, Didi has quickly gained Chinese
support, and with over 7.4 billion rides completed in 2017, Didi’s emphasis on technology has
allowed the young ridesharing firm to gain monopolistic authority within China.1
Rising transportation demand in China has created intense ridesharing competition within
China, and Didi’s early expansion efforts were obstructed by competitors, most notably Uber,
who entered China in 2014. With locations in over 60 countries, Uber had the experience
needed to quickly gain a foothold within China. Hefty subsidies, discounts, and marketing
promotions propelled the competitive battle between Uber and Didi, and the immediate
influence of Uber’s reputation led to a quick deterioration of Didi’s market dominance.
Nonetheless, governmental protectionism, strong Chinese partners, and a unique cultural
landscape in China presented Didi with the competitive edge needed to halt Uber’s expansion.2
Fierce opposition weakened revenues, and each firm reported losses exceeding US$1 billion
within the first year of competition.3 As a result, in August of 2016, Uber and Didi agreed to
US$35 billion alliance in which Didi would acquire Uber China. In return, Uber would receive an
initial 5.89 percent stake in the combined company, and with preferred equity interest, Uber’s
total position amounted to 17.7 percent.4 This announcement effectively halted Uber’s effort
to compete head-on with Didi in China and confirmed Didi’s dominance over the Chinese
ridesharing market.
The acquisition of Uber China meant only temporary peace to cut throat ridesharing
competition, and new wars are beginning to emerge as the two firms each strive to gain global
ridesharing dominance. Uber is now faced with a difficult situation as Chinese authority and
growing revenue streams inch Didi closer to global superiority. As Didi prepares to expand into
international markets, it is only a matter of time before these two players clash once again.5
An Evolving Chinese Ridesharing Market
China has quickly become the world’s largest provider of ridesharing services, and in 2017, a
total of 20.81 billion rides were offered through these platforms. Today, ridesharing accounts
for almost 2 percent of all transportation within China.6 While ridesharing may retain only a
modest presence, it is nonetheless the fastest growing method of transportation in the nation
as these services have been available for less than a decade. Rapid growth justifies China’s
US$30 billion ride hailing market valuation, and continued development has led analysts to
believe that this market will double in ...
· TECHUber’s Efforts to Build Chinese Business Ultimately Fail A.docxoswald1horne84988
· TECH
Uber’s Efforts to Build Chinese Business Ultimately Fail Against Homegrown Rival Didi
So far, no U.S. internet-based company has succeeded in conquering the Chinese market
By EVA DOU and KATHY CHU
Updated Aug. 1, 2016 10:05 p.m. ET
BEIJING—Uber Technologies Co. entered China with billions of dollars to spend and ambitions to dominate the world’s biggest market for ride hailing. It wasn’t enough.
After almost three years, Uber agreed to sell its China business to rival Didi Chuxing Technology Co., the Chinese company announced Monday. Despite launching private ride-sharing services in China a full year before Didi, Uber has been outmaneuvered by the homegrown player, which added localized features, landed powerful investors and wooed Chinese regulators and press. Uber and outside investors in Uber China will get 20% in the merged company, which has a combined valuation of $36 billion.
U.S. internet companies have long struggled in vain to capitalize on the allure of China’s enormous population and growing wealth. Some have been stymied by strict government licensing and censorship, which contributed to Google Inc.’s decision in 2010 to shutter its China-base search engine and has effectively barred access to Facebook Inc. and Twitter Inc.
Others have been bested by deep-pocketed local rivals that adapt quickly to Chinese consumer preferences. Amazon.com Inc. and eBay Inc. both faced off unsuccessfully against Alibaba Group Holding Ltd.
“So far we haven’t seen a foreign internet company that has made it big in China,” said Andrew Teoh, managing partner of Ameba Capital, an early investor in Didi.
Other companies in the technology industry and beyond have struggled with a range of hurdles in China, including government policies that favor domestic players. Apple Inc. and Microsoft Corp., for instance, have felt a sales chill in China amid Beijing’s growing focus on using “secure” domestic equipment.
“The environment has become more challenging,” said Jeremie Waterman, executive director for greater China at the U.S. Chamber of Commerce. “There’s no question that there are Chinese companies that are more competitive than they were five or 10 years ago, but there’s also no question that the government has and is increasingly putting its thumb on the scales to benefit Chinese companies.”
China is extremely important to many companies. General Motors Co., which used decades-old alliances in the region to become one of the largest players in the world’s biggest light-vehicle market, counts on Chinese operations for about $2 billion in operating profit annually and has committed to spend 100 billion yuan ($15.1 billion) between now and 2020 on new car development. Although less profitable than U.S. operations, China accounts for about a third of vehicle sales and its position has grown in 2016 as the wider auto market shakes off volatility.
Still, a survey released in January by the American Chamber of Commerce in China found that only 64% of .
Uber and didi chuxing merger threatens traditional taxisKyna Tsai
The document discusses how ride-hailing apps from Didi Chuxing and Uber threaten China's traditional taxi industry. Didi Chuxing has expanded to over 400 cities in China, while Uber aims to reach 100 cities by the end of 2016. Their lower prices have appealed to consumers and caused taxi drivers to see a decline in customers. Major taxi companies have also seen decreasing revenues. The rise of ride-hailing apps is exacerbated by a gap between the number of taxis and population in many Chinese cities.
How Chinese Company Didi Chuxing Uses AI & Machine Learning To Revolutionize ...Bernard Marr
Didi Chuxing’s, the world’s largest ride-sharing company, hopes to revolutionize transportation and automotive technology by using artificial intelligence technology. Didi collects vast amounts of data when it serves its 550 million registered customers that can be used to solve transportation challenges through AI.
A ride-hailing giant’s spoiled IPO. An app store ban. A government probe. Didi Global’s fall from grace is one of the most remarkable in a series of comedowns the Chinese government has forced on its domestic internet stars.
On-demand Transport Technology Companies around the World - Top 30 PlayersValoriser Consultants
There are number of international players who are setting global footprints and there is also an emergence of many local players in different markets.
Some of these companies are working as Aggregators (Individual taxi owners are covered under one umbrella), Ride Sharers (when you share the rides with someone on short term basis) and Carpoolers (When you share the rides with someone registered under the network).
Check out the details of Top 30 companies which are operating in this area. For any information, please contact info@valoriserconsultants.com
On-demand car sharing services become increasingly prevalent in recent years. To understand how a car sharing system is intended to work, this paper investigates the business model of DiDi, the world’s largest mobile-based transportation platform, from four dimensions in a perspective of practical operations: service pattern, operating mechanism, pricing model, and safety strategy. Four key elements that bring DiDi into growth and mark car sharing services in the context of sharing economy are identified by going through an insight into the nature of DiDi business model. This study will help DiDi-like collaborative ventures contrast and check their business models to form their own unique leading edge
Baidu is China's leading search engine with over 70% market share. It has partnered with insurers like Allianz and CPIC to offer insurance products through subsidiaries like Du Xiaoman, which offers wealth management and mobile payment products. Baidu is also investing heavily in autonomous driving through its Apollo program, working with automakers to develop self-driving vehicles and services. It uses location data from its map services to cross-sell insurance policies.
In-Depth Integrative Case 4.1 How Didi Fought Uber in China LizbethQuinonez813
In-Depth Integrative Case 4.1
How Didi Fought Uber in China and Won; Next, Taking On the
World
Introduction
Technology is constantly evolving, and firms who have leveraged the unprecedented growth
rate of modern innovation have seen quick success. Didi Chuxing, China’s largest ridesharing
servicer, is no exception. With roots dating back to 2012, Didi has quickly gained Chinese
support, and with over 7.4 billion rides completed in 2017, Didi’s emphasis on technology has
allowed the young ridesharing firm to gain monopolistic authority within China.1
Rising transportation demand in China has created intense ridesharing competition within
China, and Didi’s early expansion efforts were obstructed by competitors, most notably Uber,
who entered China in 2014. With locations in over 60 countries, Uber had the experience
needed to quickly gain a foothold within China. Hefty subsidies, discounts, and marketing
promotions propelled the competitive battle between Uber and Didi, and the immediate
influence of Uber’s reputation led to a quick deterioration of Didi’s market dominance.
Nonetheless, governmental protectionism, strong Chinese partners, and a unique cultural
landscape in China presented Didi with the competitive edge needed to halt Uber’s expansion.2
Fierce opposition weakened revenues, and each firm reported losses exceeding US$1 billion
within the first year of competition.3 As a result, in August of 2016, Uber and Didi agreed to
US$35 billion alliance in which Didi would acquire Uber China. In return, Uber would receive an
initial 5.89 percent stake in the combined company, and with preferred equity interest, Uber’s
total position amounted to 17.7 percent.4 This announcement effectively halted Uber’s effort
to compete head-on with Didi in China and confirmed Didi’s dominance over the Chinese
ridesharing market.
The acquisition of Uber China meant only temporary peace to cut throat ridesharing
competition, and new wars are beginning to emerge as the two firms each strive to gain global
ridesharing dominance. Uber is now faced with a difficult situation as Chinese authority and
growing revenue streams inch Didi closer to global superiority. As Didi prepares to expand into
international markets, it is only a matter of time before these two players clash once again.5
An Evolving Chinese Ridesharing Market
China has quickly become the world’s largest provider of ridesharing services, and in 2017, a
total of 20.81 billion rides were offered through these platforms. Today, ridesharing accounts
for almost 2 percent of all transportation within China.6 While ridesharing may retain only a
modest presence, it is nonetheless the fastest growing method of transportation in the nation
as these services have been available for less than a decade. Rapid growth justifies China’s
US$30 billion ride hailing market valuation, and continued development has led analysts to
believe that this market will double in ...
· TECHUber’s Efforts to Build Chinese Business Ultimately Fail A.docxoswald1horne84988
· TECH
Uber’s Efforts to Build Chinese Business Ultimately Fail Against Homegrown Rival Didi
So far, no U.S. internet-based company has succeeded in conquering the Chinese market
By EVA DOU and KATHY CHU
Updated Aug. 1, 2016 10:05 p.m. ET
BEIJING—Uber Technologies Co. entered China with billions of dollars to spend and ambitions to dominate the world’s biggest market for ride hailing. It wasn’t enough.
After almost three years, Uber agreed to sell its China business to rival Didi Chuxing Technology Co., the Chinese company announced Monday. Despite launching private ride-sharing services in China a full year before Didi, Uber has been outmaneuvered by the homegrown player, which added localized features, landed powerful investors and wooed Chinese regulators and press. Uber and outside investors in Uber China will get 20% in the merged company, which has a combined valuation of $36 billion.
U.S. internet companies have long struggled in vain to capitalize on the allure of China’s enormous population and growing wealth. Some have been stymied by strict government licensing and censorship, which contributed to Google Inc.’s decision in 2010 to shutter its China-base search engine and has effectively barred access to Facebook Inc. and Twitter Inc.
Others have been bested by deep-pocketed local rivals that adapt quickly to Chinese consumer preferences. Amazon.com Inc. and eBay Inc. both faced off unsuccessfully against Alibaba Group Holding Ltd.
“So far we haven’t seen a foreign internet company that has made it big in China,” said Andrew Teoh, managing partner of Ameba Capital, an early investor in Didi.
Other companies in the technology industry and beyond have struggled with a range of hurdles in China, including government policies that favor domestic players. Apple Inc. and Microsoft Corp., for instance, have felt a sales chill in China amid Beijing’s growing focus on using “secure” domestic equipment.
“The environment has become more challenging,” said Jeremie Waterman, executive director for greater China at the U.S. Chamber of Commerce. “There’s no question that there are Chinese companies that are more competitive than they were five or 10 years ago, but there’s also no question that the government has and is increasingly putting its thumb on the scales to benefit Chinese companies.”
China is extremely important to many companies. General Motors Co., which used decades-old alliances in the region to become one of the largest players in the world’s biggest light-vehicle market, counts on Chinese operations for about $2 billion in operating profit annually and has committed to spend 100 billion yuan ($15.1 billion) between now and 2020 on new car development. Although less profitable than U.S. operations, China accounts for about a third of vehicle sales and its position has grown in 2016 as the wider auto market shakes off volatility.
Still, a survey released in January by the American Chamber of Commerce in China found that only 64% of .
Uber and didi chuxing merger threatens traditional taxisKyna Tsai
The document discusses how ride-hailing apps from Didi Chuxing and Uber threaten China's traditional taxi industry. Didi Chuxing has expanded to over 400 cities in China, while Uber aims to reach 100 cities by the end of 2016. Their lower prices have appealed to consumers and caused taxi drivers to see a decline in customers. Major taxi companies have also seen decreasing revenues. The rise of ride-hailing apps is exacerbated by a gap between the number of taxis and population in many Chinese cities.
How Chinese Company Didi Chuxing Uses AI & Machine Learning To Revolutionize ...Bernard Marr
Didi Chuxing’s, the world’s largest ride-sharing company, hopes to revolutionize transportation and automotive technology by using artificial intelligence technology. Didi collects vast amounts of data when it serves its 550 million registered customers that can be used to solve transportation challenges through AI.
A ride-hailing giant’s spoiled IPO. An app store ban. A government probe. Didi Global’s fall from grace is one of the most remarkable in a series of comedowns the Chinese government has forced on its domestic internet stars.
On-demand Transport Technology Companies around the World - Top 30 PlayersValoriser Consultants
There are number of international players who are setting global footprints and there is also an emergence of many local players in different markets.
Some of these companies are working as Aggregators (Individual taxi owners are covered under one umbrella), Ride Sharers (when you share the rides with someone on short term basis) and Carpoolers (When you share the rides with someone registered under the network).
Check out the details of Top 30 companies which are operating in this area. For any information, please contact info@valoriserconsultants.com
On-demand car sharing services become increasingly prevalent in recent years. To understand how a car sharing system is intended to work, this paper investigates the business model of DiDi, the world’s largest mobile-based transportation platform, from four dimensions in a perspective of practical operations: service pattern, operating mechanism, pricing model, and safety strategy. Four key elements that bring DiDi into growth and mark car sharing services in the context of sharing economy are identified by going through an insight into the nature of DiDi business model. This study will help DiDi-like collaborative ventures contrast and check their business models to form their own unique leading edge
Baidu is China's leading search engine with over 70% market share. It has partnered with insurers like Allianz and CPIC to offer insurance products through subsidiaries like Du Xiaoman, which offers wealth management and mobile payment products. Baidu is also investing heavily in autonomous driving through its Apollo program, working with automakers to develop self-driving vehicles and services. It uses location data from its map services to cross-sell insurance policies.
An Conghui, president of Zhejiang Geely Holding Group and CEO of Geely Auto Group, explains the future of flying cars and the value of an international brand.
Uber signed a strategic investment deal with Times Internet to help expand in India. Times Internet will help Uber navigate regulatory obstacles and grow its marketing and distribution in India. Uber faces challenges expanding globally from legal issues with taxis in various countries. India is Uber's second biggest market, and it is investing heavily there through partnerships like with Times Internet to understand local markets and consumers better. The taxi market in India is large but still developing, with opportunity for growth in organized sector players like Uber.
2014 was all about...people. The world-class entrepreneurs who feed off the energy of the companies they are building and the industries they are changing.
Capital taxi is facing competition from Uber in Ottawa and needs a new strategic plan. The business growth consultant will create two strategies: Strategy A focuses on economic and marketing approaches like finding new clients through better technology, building relationships, and client retention. Strategy B involves working with the government on issues like unfair competition and insurance requirements facing Uber. The consultant will evaluate the strategies based on the company's financial results and employee morale.
The taxi industry has boomed with the rise of taxi aggregators and ride-sharing services enabled by mobile apps. This document describes two main types of taxi services - radio taxi companies that own fleets and hire drivers, and taxi aggregators like Uber that connect independent drivers with riders through a mobile app. Uber in particular is discussed, including its business model, expansion, controversies, and competitors like Lyft. Instant messaging apps are also moving into the taxi space through partnerships that allow users to book rides within the messaging platforms.
This document summarizes a report on transforming trucking in India to zero-emission trucks. It finds that India's trucking market is expected to grow over 4 times by 2050 to meet rising demand, fueling economic growth and transportation emissions. Zero-emission trucks like battery electric and fuel cell electric trucks provide an opportunity for India to reduce emissions and costs while scaling the domestic manufacturing of these vehicles. The report analyzes scenarios for adopting zero-emission medium and heavy-duty trucks in India and finds it could produce economic, energy security, and emissions benefits for the country. It recommends coordinated public and private actions to increase manufacturing and charging infrastructure to scale adoption.
Most Popular Real-Time Ridesharing Apps For Ride Solution in 2023.pdfCerebrum Infotech
CereRides offers its clients the best ride-sharing app solutions; it is a platform where you can interact with drivers and passengers using a mobile app.For additional information, please visit our website.
Uber in China: What's next? (Study from DDIM 10 class)Alessio Mascolo
Uber is considering its options in the Chinese market including a price war, imitation of competitors through taxi-hailing, mergers and acquisitions, or strategic partnerships. The group analyzes these options and recommends a three-part action plan. In the short term, Uber should shut down its unprofitable People's Uber service and pursue strategic alliances to expand in high-end markets. In the mid-term, it should collaborate with the government on regulations and forecast vehicle needs in cities. For the long term, Uber may reintroduce People's Uber as a customized, profitable service if regulations allow.
Social Media Campaign Proposal for CitiBikeRuochen CHENG
Citi Bike is New York City's bike sharing system that aims to provide transportation around the city. With an influx of funding, Citi Bike plans to expand into new neighborhoods in 2015. The document provides a SWOT analysis and discusses Citi Bike's competitors. It recommends increasing Citi Bike's social media presence on platforms like Twitter and Instagram to engage more users, strengthen its brand, and increase annual memberships as the system expands into new areas. Key performance indicators include increased social media followers and positive sentiment toward Citi Bike.
- ICT infrastructure like 4G and smartphones were fundamental to DiDi's growth as the largest ride-hailing platform in China.
- Algorithms and AI are key to DiDi's operational efficiency, like optimizing dispatching and route planning.
- While DiDi gathers vast amounts of customer data, building true customer insights requires understanding customer needs based on data analysis and feedback.
Automotive Industry Insights Winter 2018Duff & Phelps
The automotive industry showed signs of peak sales in 2017, while earnings and stock prices continued to increase. Industry competitors are racing to develop revolutionary new technology that could dramatically change the automotive landscape over the next decade.
Gone are the days when we had to go through strenuous efforts to hail a taxi. Imagine having to do that on a sweltering June afternoon or a stormy night, for that matter. The mere thought of it can send one into panic mode. Thanks to the expanding ridesharing world, we no longer have to fret, for ridesharing applications have made it relatively simple to catch a ride. According to growth projections, the ridesharing market will grow to a whopping USD 242.73 billion in 2028 at a Compound Annual Growth Rate of 16.3%. A detailed look into some of the top ridesharing companies will go a long way to helping and inspiring others to set foot in taxi booking application development.
Gone are the days when we had to go through strenuous efforts to hail a taxi. Imagine having to do that on a sweltering June afternoon or a stormy night, for that matter. The mere thought of it can send one into panic mode. Thanks to the expanding ridesharing world, we no longer have to fret, for ridesharing applications have made it relatively simple to catch a ride. According to growth projections, the ridesharing market will grow to a whopping USD 242.73 billion in 2028 at a Compound Annual Growth Rate of 16.3%. A detailed look into some of the top ridesharing companies will go a long way to helping and inspiring others to set foot in taxi booking application development.
1. BYD was founded in 1995 by a chemical engineer to produce batteries and later expanded into automobiles. It has received government support through subsidies and policies promoting hybrid vehicles.
2. BYD has competitive advantages including government support, a growing middle class in China creating demand, and partnerships with companies like Daimler. Its CEO Wang Chuanfu focuses on developing talent and technological innovation.
3. BYD produces the world's first mass-produced plug-in hybrid passenger car and has supplied electric buses around the world. It is exploring opportunities in China's growing car-sharing market.
Mobility market report in China by daxue consultingDaxue Consulting
The champions of mobility in China include the ride-hailing service Didi Chuxing and the food delivery service Meituan. But in the overlapping space between food delivery and ride-hailing, China lacks a dominant competitor which can do both like Uber in the west. However, that does not mean Didi or Meituan have not taken their shot at capturing the entire market. We evaluated the methods and challenges of expanding into the each-others business territory to see just how much room is left for opportunity. A comprehensive report about the mobility market in China offered by daxue consulting
With the advancement in automobile technology, vehicles are now autonomous and more connected with our mobile devices than ever. Insurance companies around the world are more and more attracted to the concept of Pay How You Drive (PHYD). Today, in the motor insurance space, there are more than 165 deployments across 35 countries, representing approximately 5 million policies. The growth is exciting and promising.
This article outlines how PHYD can encourage better driving behavior and also suggest an effective solution that has the potential to reduce claims cost/ policy administration and price policies more effectively.
With the advancement in automobile technology, vehicles are now autonomous and more connected with our mobile devices than ever. Insurance companies around the world are more and more attracted to the concept of Pay How You Drive (PHYD). Today, in the motor insurance space, there are more than 165 deployments across 35 countries, representing approximately 5 million policies. The growth is exciting and promising.
This article will outline how PHYD encourages better driving behavior and also suggests an effective solution that has the potential to reduce claims cost/ policy administration and price policies more effectively.
A ridesharing application enables users to hire cabs through a mobile app and website. After signing up and entering details like name, contact number, email, and payment information, the user can book a ride on the app. All the user has to do now is enter the destination, and a nearby driver shows up to drop them off at their destination.
To know more
https://www.rebustar.com/blog/top-ridesharing-companies/
https://www.rebustar.com/uber-clone/
roles are largely complete when they hand an investigation.docxwrite4
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The military plays an important role in responding to domestic disasters by providing personnel, equipment, and logistical support. During 9/11 and Hurricane Katrina, fighter jets patrolled cities and the National Guard and Coast Guard conducted large-scale rescue operations. While the military is effective at disaster response, there are also debates around federalizing the National Guard, authorizing deadly force, and declaring martial law during relief efforts.
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An Conghui, president of Zhejiang Geely Holding Group and CEO of Geely Auto Group, explains the future of flying cars and the value of an international brand.
Uber signed a strategic investment deal with Times Internet to help expand in India. Times Internet will help Uber navigate regulatory obstacles and grow its marketing and distribution in India. Uber faces challenges expanding globally from legal issues with taxis in various countries. India is Uber's second biggest market, and it is investing heavily there through partnerships like with Times Internet to understand local markets and consumers better. The taxi market in India is large but still developing, with opportunity for growth in organized sector players like Uber.
2014 was all about...people. The world-class entrepreneurs who feed off the energy of the companies they are building and the industries they are changing.
Capital taxi is facing competition from Uber in Ottawa and needs a new strategic plan. The business growth consultant will create two strategies: Strategy A focuses on economic and marketing approaches like finding new clients through better technology, building relationships, and client retention. Strategy B involves working with the government on issues like unfair competition and insurance requirements facing Uber. The consultant will evaluate the strategies based on the company's financial results and employee morale.
The taxi industry has boomed with the rise of taxi aggregators and ride-sharing services enabled by mobile apps. This document describes two main types of taxi services - radio taxi companies that own fleets and hire drivers, and taxi aggregators like Uber that connect independent drivers with riders through a mobile app. Uber in particular is discussed, including its business model, expansion, controversies, and competitors like Lyft. Instant messaging apps are also moving into the taxi space through partnerships that allow users to book rides within the messaging platforms.
This document summarizes a report on transforming trucking in India to zero-emission trucks. It finds that India's trucking market is expected to grow over 4 times by 2050 to meet rising demand, fueling economic growth and transportation emissions. Zero-emission trucks like battery electric and fuel cell electric trucks provide an opportunity for India to reduce emissions and costs while scaling the domestic manufacturing of these vehicles. The report analyzes scenarios for adopting zero-emission medium and heavy-duty trucks in India and finds it could produce economic, energy security, and emissions benefits for the country. It recommends coordinated public and private actions to increase manufacturing and charging infrastructure to scale adoption.
Most Popular Real-Time Ridesharing Apps For Ride Solution in 2023.pdfCerebrum Infotech
CereRides offers its clients the best ride-sharing app solutions; it is a platform where you can interact with drivers and passengers using a mobile app.For additional information, please visit our website.
Uber in China: What's next? (Study from DDIM 10 class)Alessio Mascolo
Uber is considering its options in the Chinese market including a price war, imitation of competitors through taxi-hailing, mergers and acquisitions, or strategic partnerships. The group analyzes these options and recommends a three-part action plan. In the short term, Uber should shut down its unprofitable People's Uber service and pursue strategic alliances to expand in high-end markets. In the mid-term, it should collaborate with the government on regulations and forecast vehicle needs in cities. For the long term, Uber may reintroduce People's Uber as a customized, profitable service if regulations allow.
Social Media Campaign Proposal for CitiBikeRuochen CHENG
Citi Bike is New York City's bike sharing system that aims to provide transportation around the city. With an influx of funding, Citi Bike plans to expand into new neighborhoods in 2015. The document provides a SWOT analysis and discusses Citi Bike's competitors. It recommends increasing Citi Bike's social media presence on platforms like Twitter and Instagram to engage more users, strengthen its brand, and increase annual memberships as the system expands into new areas. Key performance indicators include increased social media followers and positive sentiment toward Citi Bike.
- ICT infrastructure like 4G and smartphones were fundamental to DiDi's growth as the largest ride-hailing platform in China.
- Algorithms and AI are key to DiDi's operational efficiency, like optimizing dispatching and route planning.
- While DiDi gathers vast amounts of customer data, building true customer insights requires understanding customer needs based on data analysis and feedback.
Automotive Industry Insights Winter 2018Duff & Phelps
The automotive industry showed signs of peak sales in 2017, while earnings and stock prices continued to increase. Industry competitors are racing to develop revolutionary new technology that could dramatically change the automotive landscape over the next decade.
Gone are the days when we had to go through strenuous efforts to hail a taxi. Imagine having to do that on a sweltering June afternoon or a stormy night, for that matter. The mere thought of it can send one into panic mode. Thanks to the expanding ridesharing world, we no longer have to fret, for ridesharing applications have made it relatively simple to catch a ride. According to growth projections, the ridesharing market will grow to a whopping USD 242.73 billion in 2028 at a Compound Annual Growth Rate of 16.3%. A detailed look into some of the top ridesharing companies will go a long way to helping and inspiring others to set foot in taxi booking application development.
Gone are the days when we had to go through strenuous efforts to hail a taxi. Imagine having to do that on a sweltering June afternoon or a stormy night, for that matter. The mere thought of it can send one into panic mode. Thanks to the expanding ridesharing world, we no longer have to fret, for ridesharing applications have made it relatively simple to catch a ride. According to growth projections, the ridesharing market will grow to a whopping USD 242.73 billion in 2028 at a Compound Annual Growth Rate of 16.3%. A detailed look into some of the top ridesharing companies will go a long way to helping and inspiring others to set foot in taxi booking application development.
1. BYD was founded in 1995 by a chemical engineer to produce batteries and later expanded into automobiles. It has received government support through subsidies and policies promoting hybrid vehicles.
2. BYD has competitive advantages including government support, a growing middle class in China creating demand, and partnerships with companies like Daimler. Its CEO Wang Chuanfu focuses on developing talent and technological innovation.
3. BYD produces the world's first mass-produced plug-in hybrid passenger car and has supplied electric buses around the world. It is exploring opportunities in China's growing car-sharing market.
Mobility market report in China by daxue consultingDaxue Consulting
The champions of mobility in China include the ride-hailing service Didi Chuxing and the food delivery service Meituan. But in the overlapping space between food delivery and ride-hailing, China lacks a dominant competitor which can do both like Uber in the west. However, that does not mean Didi or Meituan have not taken their shot at capturing the entire market. We evaluated the methods and challenges of expanding into the each-others business territory to see just how much room is left for opportunity. A comprehensive report about the mobility market in China offered by daxue consulting
With the advancement in automobile technology, vehicles are now autonomous and more connected with our mobile devices than ever. Insurance companies around the world are more and more attracted to the concept of Pay How You Drive (PHYD). Today, in the motor insurance space, there are more than 165 deployments across 35 countries, representing approximately 5 million policies. The growth is exciting and promising.
This article outlines how PHYD can encourage better driving behavior and also suggest an effective solution that has the potential to reduce claims cost/ policy administration and price policies more effectively.
With the advancement in automobile technology, vehicles are now autonomous and more connected with our mobile devices than ever. Insurance companies around the world are more and more attracted to the concept of Pay How You Drive (PHYD). Today, in the motor insurance space, there are more than 165 deployments across 35 countries, representing approximately 5 million policies. The growth is exciting and promising.
This article will outline how PHYD encourages better driving behavior and also suggests an effective solution that has the potential to reduce claims cost/ policy administration and price policies more effectively.
A ridesharing application enables users to hire cabs through a mobile app and website. After signing up and entering details like name, contact number, email, and payment information, the user can book a ride on the app. All the user has to do now is enter the destination, and a nearby driver shows up to drop them off at their destination.
To know more
https://www.rebustar.com/blog/top-ridesharing-companies/
https://www.rebustar.com/uber-clone/
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1. (Mt) – How Didi Fought Uber in China and Won: Next, Taking
https://www.wsj.com/articles/SB10001424127887323384604578325 864020138732.
32. Jens Hansegard, “IKEA: Chinese Officials Find Coliform Bacteria in IKEA Cakes,” Wall
Street Journal, March 5, 2013. Page 560 In-Depth Integrative Case 4.1 How Didi Fought Uber
in China and Won; Next, Taking On the World Introduction Technology is constantly
evolving, and firms who have leveraged the unprecedented growth rate of modern
innovation have seen quick success. Didi Chuxing, China’s largest ridesharing servicer, is no
exception. With roots dating back to 2012, Didi has quickly gained Chinese support, and
with over 7.4 billion rides completed in 2017, Didi’s emphasis on technology has allowed
the young ridesharing firm to gain monopolistic authority within China.1 Rising
transportation demand in China has created intense ridesharing competition within China,
and Didi’s early expansion efforts were obstructed by competitors, most notably Uber, who
entered China in 2014. With locations in over 60 countries, Uber had the experience needed
to quickly gain a foothold within China. Hefty subsidies, discounts, and marketing
promotions propelled the competitive battle between Uber and Didi, and the immediate
influence of Uber’s reputation led to a quick deterioration of Didi’s market dominance.
Nonetheless, governmental protectionism, strong Chinese partners, and a unique cultural
landscape in China presented Didi with the competitive edge needed to halt Uber’s
expansion.2 Fierce opposition weakened revenues, and each firm reported losses exceeding
US$1 billion within the first year of competition.3 As a result, in August of 2016, Uber and
Didi agreed to US$35 billion alliance in which Didi would acquire Uber China. In return,
Uber would receive an initial 5.89 percent stake in the combined company, and with
preferred equity interest, Uber’s total position amounted to 17.7 percent.4 This
announcement effectively halted Uber’s effort to compete head-on with Didi in China and
confirmed Didi’s dominance over the Chinese ridesharing market. The acquisition of Uber
China meant only temporary peace to cut throat ridesharing competition, and new wars are
beginning to emerge as the two firms each strive to gain global ridesharing dominance.
Uber is now faced with a difficult situation as Chinese authority and growing revenue
streams inch Didi closer to global superiority. As Didi prepares to expand into international
markets, it is only a matter of time before these two players clash once again.5 An Evolving
Chinese Ridesharing Market China has quickly become the world’s largest provider of
ridesharing services, and in 2017, a total of 20.81 billion rides were offered through these
platforms. Today, ridesharing accounts for almost 2 percent of all transportation within
China.6 While ridesharing may retain only a modest presence, it is nonetheless the fastest
2. growing method of transportation in the nation as these services have been available for
less than a decade. Rapid growth justifies China’s US$30 billion ride hailing market
valuation, and continued development has led analysts to believe that this market will
double in size by the end of 2020.7 Ridesharing within China offers a sustainable solution to
China’s road congestion and emission pollution issues. According to the World Bank, China’s
transportation sector accounts for nearly 55 percent of oil consumption, and transportation
related carbon emissions amounted to nearly 900 million tons in 2016.8 Furthermore, a
recent study conducted by the Asian Development Bank found that 7 of the 10 most
polluted cities in the world are located in China. The World Health Organization has
additionally reported that only 1 percent of all Chinese cities meet air quality standards, and
in some cities, particulate matter pollution is more than 10 times the WHO limit.9 Chinese
consumers are more willing to try new products and are more accepting of new technology,
leading to a quick embrace of ride hailing services by both Chinese citizens and
governments. A recent study by Bain and Company noted that 62 percent of Chinese
respondents listed e-hailing services as their primary driver of increased mobility
preferences. Conversely, less progressive nations such as the U.S. and Germany had only 29
percent and 23 percent of respective respondents list e-hailing as a mobility preference
contributor.10 Governmental vehicle limitations have also contributed to mounting
ridesharing support. In an effort to curb pollution and congestion, China has implemented
many regulations aimed at limiting the number of vehicles on the road. In Beijing for
instance, a city with some of the most congested roads in the world, citizens are only eligible
to drive on predefine dates based on their license plates numbers. Furthermore, mounting
taxes, fees, and restraints associated with purchasing and operating a vehicle have forced
many to rethink transportation.11 In 2016, the country legalized ridesharing, thus
becoming the first developed country to nationally do so. This legislation would require all
drivers to pass national background checks and car inspections, and China’s willingness to
embrace ridesharing shows its eagerness to improve domestic transportation options.12
Page 561 Didi Chuxing: Building a Better Journey Growing transportation concerns within
China increased the demand for new and innovative methods of travel. As a result, in 2012,
rideshare servicer Didi Dache was established. Founded by Cheng Wei, a former Alibaba
employee who had grown tired of the difficulty associated with hailing a cab during rush
hour, Didi Dache received early national embrace.13 Ridesharing expanded quickly, and by
2015, China’s rideshare servicers were transporting over 150 million monthly users. Early
success was headed by both Didi Dache and competitor Kuaidi Dache, and the combined
position of these two firms amounted to nearly 95 percent of China’s ridesharing market.14
Competition between these two service leaders grew in hostility, and by February of 2015,
the firms agreed to end their competitive battle through a merger. The merged company
would rebrand itself as Didi Kuaidi, later to be changed to Didi Chuxing, and valuations for
the newly formed ridesharing monopoly were placed at around US$6 billion.15 Merging not
only ended competition, but it also allowed for multiple legal and regulatory advantages,
especially in China’s more restrictive cities like Shanghai and Beijing where drivers were
prohibited from using multiple ridesharing apps.16 Additionally, Uber’s expansion into
China in 2014 meant that combining resources and knowledge would be the only way either
3. company could survive. By the time the merger was finalized, the combined firm controlled
an 80 percent majority of China’s private car hailing market.17 Didi Chuxing now offers
upscale limousine rides, food delivery services, inner city busing, and bike sharing in
addition to its typical express ridesharing. While Didi has yet to expand outside of China,
heavy international investments have allowed the firm to gain a global footprint. Didi now
has relationships with Lyft in America, Ola in India, GrabTaxi in Southeast Asia, 99 in Latin
America, and Taxify in Europe (see Figure 1).18 Figure 1 Didi Chuxing’s Global Partnerships
Source: Bhuiyan, Johana, and Rani Molla. “Didi is Chasing Uber Around the World.” Vox,
August 10, 2017. https://www.vox.com/2017/8/10/16114736/didi-china-ride-
hailcompares-uber-globally. Didi Chuxing has the goal of “building a better journey,” and the
firm’s vision of “Becoming a global leader in the revolution of transportation and
automotive technology” describes how the firm plans to achieve this ambition. These ideas
are central to the firm’s nearly 10,000 employees, half of which are engineers and data
scientists.19 Didi has supported its vision through heavy investments in machine learning,
artificial intelligence, and electronic vehicles. Innovation has spawned expansion, and
investments by Apple have resulted in a shared Silicon Valley research and development lab
that focuses on AI advancement and self-driving technology. For Didi, this lab is only one of
three research facilities, and the firm has been using machine learning and data collection to
improve the fluidity of its services since its founding.20 Didi Chuxing’s emphasis on
improving its services through innovation is most clearly demonstrated through its Smart
Transportation Brain technology. Through a partnership with the Chinese government, Didi
has been able to combine its camera and sensor data with governmental road reports to
proactively manage traffic in real time. For instance, data sharing has led to the installation
of smart traffic lights that decrease road congestion. The severity of transportation issues
within China has led to governmental backing as both Didi and the Chinese government
share similar goals of traffic alleviation. Governmental support, mixed with an environment
that encourages ridesharing, [has] greatly contributed to Didi’s dominance within China.21
Managing Mounting Threats While Didi’s capabilities have created success, generating a
consistent profit remains a major challenge for the firm. Cheng Wei has often hinted at the
private firm’s stressed financial situation, and in 2018, Didi was rumored to have a net loss
of US$1.6 billion. High losses are a result of rider subsidies, and Didi is known for
underpricing competitors and attracting new users through deep discounts. Driver
shortages—a result of regulations that prohibit migrant workers from driving—have also
cut into revenue.22 Although most ridesharing competitors, like Uber, have yet to generate
a profit, the extent of Didi’s losses in such a concentrated market are particularly worrisome
for the firm.23 Didi’s per ride revenue averages around 16 cents, and with as Page 562
many as 30 million daily rides given, the profit potential for the company is enormous.
Nonetheless, post subsidy profit can be as little as 1.6 cents and total 2018 subsidies were
estimated at US$1.7 billion. The firm has only been able to survive in such a loss heavy
environment due to the support of strong domestic partners and partnerships with Alibaba,
Softbank, Tencent, and Apple. These investments have generated US$12 billion of on-hand
cash, which continues to fund subsidies, tech innovation, and expand the firm’s
international presence. While Didi may remain a loss leader for some time, the growing
4. ubiquity of the firm’s presence will most likely lead to profits in the long run.24 Recent
attacks against riders have weakened Didi’s perception of safety. Even though Didi’s
accident rates are far lower than that of a traditional taxis, there has been much backlash
against the firm ever since two female passengers were killed by Didi drivers in early 2018.
Both incidents were directly linked to faults within Didi’s platform, such as the firm’s lack of
receptiveness to user complaints. In response to these attacks, Didi announced that it would
not focus on profits until all safety concerns were addressed. Didi has since introduced
random biometric ID testing in addition to the selfie-based login system previously used to
identify drivers and added an in-app SOS button that is linked to a special police response
team focused on dealing with transportation threats. Wei hopes that these efforts will
revitalize Didi’s damaged image.25 Negative backlash has not halted Didi’s push forward,
and international support is growing so rapidly that valuation estimates have begun to rival
that of Uber.26 Similarly, Fortune magazine has ranked Didi 53rd on its 2018 list of
companies changing the world due to the progress the firm has made in limiting road
congestion and decreasing transportation-induced environmental impacts.27 Didi’s
influence has led to Cheng Wei being listed as Forbes Asia’s 2016 Businessman of the year,
and this innovative mentality has also resulted in Didi being ranked 4th on CBNC’s 2018
Disruptor 50 list, a ranking that presents the top companies changing their respective
industries.28 China’s Business Environment Rapid growth has expanded individual wealth,
and more than half of all households within China will be considered middle class by 2022.
The nation’s per capita disposable income is now around 28,000 yuan, or 4,000 dollars.29
Increasing wealth has shifted preferences and discretionary spending has grown 13.4
percent since 2010. As wages and consumption rise, the population is beginning to spend
more on entertainment, relaxation, and travel—all of which influence ridesharing
demand.30 New spending patterns have also attracted foreign firms, and many now invest
heavily in this high-growth market. Within the last 10 years alone, China has received over
20 percent of all developing countries’ FDI, and with over US$100 billion invested annually,
China has become one of the most heavily targeted nations in the world.31 Although China
has opened its markets, cultural and regulatory obstacles have nonetheless obstructed
many foreign firms’ entrances. China operates under a hybrid economic system, meaning
that some sectors are market-based, while others remain state-owned and protected. Most
industries fall in the middle of this spectrum and governmental backing of domestic firms
has limited the entrance of foreign competitors.32 Foreign tech and retail giants, such as
Google and Walmart, have faced many restrictions within China, and the nation uses
protectionism as a tactic to grow local economies. This protectionist emphasis explains why
Chinese firms consistently outperform foreign rivals.33 Business etiquette varies
significantly within China, and many western firms have historically found it difficult to
operate within the nation’s rigid business environment. Within China, leadership is
synonymous to loyalty and it is taboo for subordinates to question upper management.
Strict group structures heavily influence the way in which management operates, and many
Chinese communities believe that western leadership hierarchies are too relaxed. These
leadership differences were key contributors to the early hostilities felt between Didi
Chuxing and Uber, and different mentalities fueled the passion each enterprise felt over
5. establishing its own cultural precedent within China’s ridesharing industry.34 China’s
business environment has similarly impacted the way ridesharing has been addressed
within the nation. On a national level, regulations require that ridesharing firms hire local
residents, and that both drivers and vehicles obtain specific certifications. Drivers must
have a minimum of three years driving experience and no criminal record, and they must be
licensed by local taxi authorities. As compared to other nations, China is much more open to
ridesharing, and it was the first country to nationally address the industry. This openness
demonstrates both executive level support for domestic growth and a culturally progressive
mindset. Governmental support of ridesharing was ultimately an important factor of Uber’s
market entrance.35 Uber: Setting the World in Motion Founded by Travis Kalanick and
Garrett Camp in 2009, Uber is now regarded as a ridesharing pioneer and global industry
leader. Since Uber’s first San Francisco ride in 2010, the firm has prioritized Page 563
development, and in just 10 years, Uber has become one of the world’s most valuable
private startups. While valuations peaked at US$72 billion in 2017, many still regard Uber
as a leader in the future of transportation, and many more believe that its aggressive
demeanor will lead to both domestic and international success.36 Established as a taxi
service, Uber now offers a multitiered platform of transportation and logistic solutions,
including shipping, food delivery, electronic bikes, and limousines. This diversification has
expanded Uber’s potential and has grown the company beyond ridesharing. Today, services
like Uber Eats now make up 17 percent of total business.37 Furthermore, with a mission
that reads, “To ignite opportunity by setting the world in motion,” Uber and its 2 million
global drivers focus on bettering the future of transportation. In doing so, Uber has
emphasized technology advancement and is currently investing in innovative travel
solutions, ranging from autonomous vehicles to flying cars.38 In 2018 alone, ridesharing
services in the U.S. generated US$15.6 billion, and revenues are anticipated to reach
US$26.3 billion by 2023. Additionally, the U.S. currently has 50 million registered
ridesharing users, and 11 million new riders are estimated to emerge within the next five
years.39 For Uber, the bulk of its business remains domestic, and while premiums are
generally higher in the U.S., market growth is more promising internationally. For instance,
a major consideration of international ridesharing growth is vehicles per capita. The United
States has one of the highest vehicle per capita rates, and 88 percent of U.S. citizens own a
car, compared to about 10 percent globally.40 This disparity in transportation accessibility
has caused many American ridesharing firms to expand into foreign nations, such as China,
where the market potential is larger. Higher demand for ridesharing internationally has led
to expedited foreign growth, and by 2025, the global ridesharing industry will be 10 times
larger than that of the U.S.41 Uber has focused on international expansion since its
inception. In December of 2011, a little more than a year after the firm’s first San Francisco
ride, Uber expanded into Paris. Within the next two years, the firm grew its operations
across 6 continents. Today, Uber is active in over 600 cities in 70 unique countries (see
Figure 2). Nevertheless, almost a third of these locations are within North America, and
Uber’s largest presence remains domestic.42 As a result, most of the firm’s income is
generated within the U.S., and despite a growing international focus, over 57 percent of
Uber’s revenues will come from North America by 2022.43 Figure 2 Uber’s Operations
6. Around the Globe Source: Bhuiyan, Johana, and Rani Molla. “Didi is Chasing Uber Around the
World.” Vox, August 10, 2017. https://www.vox.com/2017/8/10/16114736/didi-china-
ride-hailcompares-uber-globally. Foreign competition and international backlash have
inhibited Uber’s success, and while the firm is becoming globally known, many foreign
developments have been ineffective. Uber’s expansion techniques have typically involved
offering deep discounts while leveraging the prestige associated with its brand.44 Uber
rarely makes local adjustments, and the firm has often been criticized for not adapting to
the cultural, economic, and political environments of an area it expands into. As a result,
many have questioned the speed of Uber’s expansion and condemn the company for not
taking the time to properly adapt to the nuances of the locations it enters. Uber’s expansive
setbacks can be linked to its “think local to expand global” attitude and many believe that
the largest inhibitor to Uber’s success has been its inability to adapt.45 Many have also
questioned the legal and societal aspects of Uber’s services, and fierce lobbying, especially
by taxi unions, has disrupted international expansion. Opposition has led to violent protests
and state-wide bans in places like Hungary, Italy, and France. In Morocco, Uber drivers have
claimed that disputes with taxi servicers have resulted in physical harm, threats, and
unlawful detainment. As attacks become more common, many passengers question the
safety of the service.46 Growing opposition and overly eager expansion plans have
damaged Uber’s financial position, and costly battles within less open-minded countries
have slowed revenue growth. While self-reported financial statements show that revenues
reached US$11.3 billion in 2018, many speculators are concerned with the firm’s slowing
growth. Furthermore, after deducting expenses, Uber showed a net loss of US$1.8 billion in
2018. This loss can be mainly attributed to unsuccessful international expansions, brand
damage control, and regulatory lawsuits.47 Along with revenue concerns, Uber has also
been plagued by leadership scandals. Travis Kalanick, cofounder and CEO of Uber, was
known to support a workplace culture that tolerated both discrimination and sexual
harassment. Kalanick was forced to step down after the firm’s five largest investors
threatened to pull their funding.48 Traditionally, Uber’s overall leadership has placed a high
focus on growth, resulting in a hostile company culture, which one former employee
described as “Hobbesian.” Growth has always undermined employee wellbeing, and
“workers were often pitted against one another while a blind eye was turned to infractions
from top performers.” Corrupt leadership and a toxic work environment have resulted in
multiple lawsuits, new management, and faulty expansive efforts.49 Page 564 Uber’s
Milestones 2009 • • Travis Kalanick and Garrett Camp launch UberCab. UberCab is
rebranded as Uber. 2010 • Travis Kalanick replaces Ryan Graces as CEO. • The Uber app
launches on iPhone and Android. • Uber performs its first ever ride, taking a single
passenger across San Francisco. • Domestic expansion begins and services are offered in
cities such as New York and Chicago. 2011 • • First international launch in Paris, France.
First round of funding results in over US$11 million of investments. • Expands into France. •
Ridesharing becomes primary focus through the launching of UberX. 2012 • Competitor Lyft
is founded. • Expands into Australia, Canada, and the United Kingdom. • Begins looking for
opportunities in Asia, taking off in Taipei, Taiwan. • Targets Central and South American
through Mexico City expansion. 2013 • Establishes a global mindset by launching in
7. Johannesburg, South Africa. • USA Today names Uber Tech Company of the year. • Expands
into India, Mexico, Germany, South Africa, Taiwan, and the United Arab Emirates. • Enters
China. • Chinese firm Baidu backs Uber with a US$600 million investment. • UberRush
launches as a courier service that uses bicycle messengers to deliver packages. • 2014 •
UberPool begins allowing travelers to share rides. UberMilitary is founded to help returning
veterans gain employment opportunities. • Enters its 100th City. • Expands into Austria,
Bahrain, Belgium, Brazil, Chile, Czech Republic, China, Columbia, Denmark, Egypt, Finland,
Greece, Hong Kong, Hungary, Ireland, Israel, Italy, Japan, Lebanon, Netherlands, New
Zealand, Nigeria, Norway, Panama, Poland, Portugal, Qatar, Saudi Arabia, Spain, South
Korea, Sweden, and Switzerland. • Didi Chuxing is founded through a merger between
Kuaidi Dache and Didi Dache. • Didi and Lyft form a US$100 million partnership. • Ola, Grab,
Didi, and Lyft announce the Joint Global Technology and Service Alliance to battle Uber. •
UberCargo launches as a bulk shipping platform. • UberFresh is rebranded as UberEats,
growing the firm’s position in food delivery services. • 2015 • • Specific locations begin
accepting cash fees. First autonomous robotics research facility opens. First public
acquisition occurs when Uber purchases map startup deCarta. • Domestic regulatory
pressures grow after California’s Labor Commission classifies Uber drivers as employees. •
Performs its one billionth ride. • Enters its 300th city. • Expands into Costa Rica, Croatia,
Estonia, Ghana, Jordan, Kenya, Lithuania, Macao, Morocco, Peru, Romania, Slovakia, Sri
Lanka, Turkey, and Uganda. • China becomes the first country to nationally deem
ridesharing legal. • Didi Chuxing announces its acquisition of Uber China. • Scheduled ride
services launch allowing passengers to book rides up to 30 days in advance. • Street
mapping begins as a way to improve and maximize route logistics. • First self-driving
vehicle pilot takes place. 2016 • Regulatory uncertainty rises in the U.S. forces Uber to leave
cities like Austin, Texas. • Global regulatory disputes temporarily force Uber out of
countries such as Italy, Israel, and the UK. • Performs its two billionth ride just six months
after hitting one billion trips. • Enters its 500th city. • Expands into: Argentina, Bangladesh,
Bolivia, Guatemala, Pakistan, Tanzania, Uganda, and Ukraine. • UberFreight launches,
connecting trucking companies and drivers with shippers. • Passengers under 17 become
eligible to use Uber. • Passengers are now able to tip drivers. • Launches Visa-sponsored
Uber credit card. • Walmart announces home delivery through Uber partnership. • Partners
with NASA to work on the development of flying vehicles. 2017 • Travis Kalanick is forced
to resign as CEO amidst rumors of workplace discrimination and sexual misconduct. • Dara
Khosrowshahi replaces Kalanick as CEO. • Alphabet files a lawsuit against Uber claiming
theft of self-driving vehicle intellectual property. Page 565 • Performs its five billionth ride.
• Expands into Dominican Republic, Ecuador, El Salvador, and Trinidad. • UberBike
launches following the firm’s acquisition of Jump Bikes. • Electric scooter rentals become
available through a partnership with Lime. • Drivers gain eligibility to sell items to
passengers. • Launches Ride Pass monthly service subscription. 2018 • • Toyota invests in
Uber to help bring autonomous ride hailing vehicles to market. As regulatory hostility
grows, Uber begins to withdraw from costly international locations including Russia,
Southeast Asia, and Egypt. • Enters its 600th city. • Expands into Paraguay. A New
Challenger in China Despite governmental uncertainty, cultural differences, and other
8. variable entry barriers, Uber launched in China in February of 2014. Attracted by China’s
ridesharing market potential, Uber hoped to capitalize on the nation’s transportation
limitations and growing population. Furthermore, in order to overcome the legal ambiguity
of ridesharing in China, Uber entered the nation through partnerships with multiple
domestic vehicle leasing servicers and technology companies. The largest of these partners
was Chinese tech giant Baidu, and Uber reworked its internal platform to run on Baidu
Maps. This partnership was crucial to Uber’s entrance, as Uber typically relies on Google
Maps to operate, which is banned in China.50 Prior to entrance, Uber was valued at US$17
billion, and this valuation more than doubled after a year of operating within China.51
Growing competition in the U.S. ridesharing industry, along with pressure by other
transportation services, pushed Uber to look for opportunities outside of the U.S.
Widespread unification of cab drivers led to country-wide lawsuits, collective lobbying
efforts, and governmental complaints. Taxi unions fought to retain their dominance by
emphasizing ridesharing’s safety concerns and lack of regulation. By 2015, ridesharing
companies like Uber had managed to gain a substantial 29 percent market share, while car
rental agencies and taxis held onto 36 percent and 35 percent shares, respectively.52 Uber
viewed the lack of widespread Chinese competition as an additional reason to enter the
market. Prior to entrance, the only major players within China were Kuaidi Dache and Didi
Dache, which would soon merge to form Didi Chuxing. Furthermore, China’s large
population and low vehicles rates meant that Didi and taxi servicers combined could still
not meet the nation’s high transportation demand. As a result, taxi driver backlash and
protests were not as concerning, and Uber anticipated that competitive battles over
costumer acquisitions would be less fierce.53 The appeals of the Chinese market allowed
Uber to quickly grow, and aggressive expansion techniques led to the rapid diffusion of
Uber’s brand. By June of 2016, five of Uber’s ten largest cities by volume were in China. In
less than two years, Uber had expanded into 60 of the nation’s most populous cities, and it
had hoped to double its presence by 2017.54 Two years after expansion, Uber also
announced that it possessed a modest 30 percent market share within China, and Uber’s
American image had gradually gained familiarity throughout the nation. Chinese
competencies had grown faster than those in North America, and ride volume in China
quickly surpassed that of the U.S. However, costs had also grown much faster, and quick
growth resulted in unsustainable expenses and unexpectedly fierce competitive battles.55
Ridesharing Difficulties in a Foreign Landscape Despite early success, Uber quickly found
itself amongst a tide of swelling threats. Governmental and societal backlash emerged as the
ridesharing firm grew in popularity. In addition to growing city-wide mandates, the national
government begun to discuss the possibility of enacting countrywide regulations shortly
after Uber’s entrance. Mounting pressure to regulate and add safety standards threatened
Uber’s position. Furthermore, since there was no formal ruling on the legality of ridesharing
at the time of Uber’s entrance, many wrongly believed that the service was illegal. This lack
of clarity resulted in general hesitation by both drivers and riders.56 In addition to legal and
societal opposition, Uber also faced the realities of significant marketing expenses, driver
incentives, and passenger discounts.57 Finding drivers within China had been much harder
than in other international locations due to the nation’s many local and national vehicle
9. restrictions, including the prohibition of immigrants and out of city workers from driving.
To attract drivers, Uber was forced to pay pricey signon bonuses and increase the
percentage of fares that drivers kept.58 At the time of Uber’s entrance, Didi had been using
deep subsidies as a tactic to buy passenger loyalty, expand into new locations, and promote
the general image of ridesharing, and Uber was forced to respond with even more
aggressive price cuts. Increased rider incentives, such as promotional rides and sign up
bonuses, meant that Uber was losing money on each ride it performed. Losses amounted to
over US$1 billion in Uber’s first year of entrance.59 In order to support these losses, Uber
and Didi both needed to attract funding and investments. Baidu had been financing Uber
China since its inception, and aggressive investment lobby efforts by Didi resulted in
funding from Chinese conglomerates such as Tencent and Alibaba. In 2016 alone, Didi
accumulated US$7.3 billion in backing, with most of this funding coming from Apple,
Alibaba, and China Life Insurance. Uber China responded with similar efforts that resulted
in US$5 billion of investments from companies like Toyota and Tiger Global Management.60
Over time Uber’s tactics put pressure on Didi, and by 2016, Page 566 Didi’s market share
had shrunk from a near monopoly to 60 percent. Furthermore, in the wake of this
competitive battle, smaller companies such as Yidao and Shenzhou begun to emerge,
gradually taking their own cut out of China’s ridesharing market.61 As Uber gained
experience in China, it [began] expanding into smaller and less wealthy tier 3 and 4 cities.
The cost of maintenance and acquisition rose with these expansions as these locations had
been isolated from Uber’s impact so far. Expansion and discounts were required to gain
business, but this strategy hurt Uber by adding to its substantial annual loses. Using
subsidies to prioritize growth led to unsustainable losses and unrealistic demand, and it
allowed Didi to gain advantages over Uber.62 A Winning Battle: Didi’s Advantages over
Uber Despite aggressive attempts by Uber to gain a long-lasting position within China, Didi
had multiple advantages that allowed for its long-term sustainability. Didi could better
weather the storm of rampant losses, and its domestic edge would prove to be too impactful
for Uber to compete with.63 Didi Chuxing’s two years of prior experience within China
proved to be one of the most impactful advantages for the firm.64 Didi had historical data
on what services, attributes, and marketing strategies enticed Chinese customers best.
While Uber did have more experience expanding into international locations, China was
completely unlike any market it had ever entered. Didi’s first-to-market entrance countered
Uber’s typical business model and left the firm in an unfamiliar position.65 Having a longer
history within China also meant that Didi had a larger presence. While Uber had hoped to
expand into its 100th Chinese location by 2017, Didi was already present in over 400 cities
a year prior. Didi was active in nearly as many locations within China as Uber was
globally.66 More importantly, by 2016 Didi was profitable in nearly half of its locations. At
the same time, high subsidies and startup costs made Uber unprofitable in every Chinese
city it entered.67 More cities meant more daily rides, and by the end of 2015, Didi was
performing more than three times as many trips as Uber. Didi was also offering millions of
more rides through private transportation services like taxis, buses, and limousines. These
other transportation steams further diversified Didi’s capabilities, revenue, and image.
Didi’s ranged competences allowed for greater volume, a more widespread presence, and
10. added service offerings. This, in turn, translated into more experience, more employees, and
more drivers early on.68 A Chinese focus also served as a distinct advantage for Didi. By
2016, Uber was active in over 50 unique countries, and each nation presented its own
cultural aspects, societal issues, and regulatory hurdles. And as a result, Uber had to emerge
itself in many different global landscapes. Losses, lawsuits, and protests experienced in
countries thousands of miles away all impacted Uber China. Conversely, Didi was only
active within China, and while Uber was concerned with international failures, Didi could
direct all of its efforts at one nation.69 Being a Chinese-based firm presented Didi with more
tangible benefits as well.70 Didi had the support of China’s Investment Corporation, which
is particularly important for success within China as the government will often sway
lawsuits and promote legal regulations that benefit the firms it backs. As a result, CNBC
described Uber’s lack of consideration of Chinese particularities as its greatest weakness,
and one analyst noted that, “You can’t win, within China. When you have great technology
and a great business model, but don’t understand some of those local business premises,
West Coast aggressiveness will only get you so far.”71 With funding that outweighed Uber’s
by as much as US$2.3 billion, Didi’s investments were directed at stimulating Chinese
growth, and Didi was better positioned to provide deeper subsidies and discounts. Uber’s
investments, however, were often globally scattered, thus spreading the company thin.72
Didi also formed partnerships with multiple global ridesharing firms such as Lyft, Ola, and
Grab. Didi even strategically invested US$100 million into Lyft in order to indirectly attack
Uber’s domestic operations and distract the firm from its Chinese battle. Similar
investments went to Ola in India and Grab in Singapore.73 Another significant tech
investment for Didi came from Apple in 2016, totaling US$1 billion. While Uber’s
investments prioritized discounts, Didi’s funding was directed at improving user experience
and other long-term projects.74 Expanded product offerings like city-wide bike sharing,
different car rental classes, carpooling options, and busing lines revitalized the firm. Didi’s
progressive minded leadership constantly looked for ways to improve, while Uber’s
leadership only sought out ways to win. This carefully organized mentality meant larger
growth and a longer life for Didi, and Uber’s plan to use its size and experience to bully its
way into China was fruitless.75 Presenting an Acquisition Proposal After two years of
consecutive US$1 billion losses within China, Uber admitted defeat. Kalanick had noted that,
“China is only possible with profitability,” and he hoped that an alliance would give Uber the
profitability needed to succeed.76 While Didi was better positioned to survive the price
war, cooperation with Uber was becoming increasingly necessary for long-term
sustainability.77 Growing pressure by investors to cut mounting losses within China finally
forced Uber to begin negotiations with Didi in May of 2016. While dialogue was slow at first,
Didi quickly prioritized forming an alliance after a rumor emerged that Lyft had begun
working with Qatalyst Page 567 Partners LP, a boutique investment bank known for helping
tech companies merge. Fearing a potential Lyft-Uber merger, Didi sped up negotiations, and
on August 1, 2016, Didi and Uber came to an agreement.78 Prior to the agreement Didi had
42 million users while Uber China had 10 million. An alliance between the two created an
unbreakable ridesharing powerhouse within China.79 In return for the acquisition of Uber’s
Chinese operations, Uber gained a 17.7 percent stake in Didi. Additionally, Uber’s investors
11. were given a 2.3 percent stake, taking the combined position up to 20 percent. The deal
made Uber the largest stakeholder in Didi, and with Uber China being valued at US$8 billion,
Didi’s total value skyrocketed to US$36 billion (see Figure 3).80 Figure 3 Valuation History:
Uber vs Didi Sources: “Battle of the Decacorns: Uber vs. Didi Chuxing’s Valuations over
Time.” CB Insights, August 5, 2016. https://www.cbinsights.com/research/uber-vs-didi-
chuxingvaluation-history; “China’s Ride-Hailing App Didi Gets $500 Million Funding from
the Parent of Booking.com.” Reuters, July 17, 2018.
https://www.cnbc.com/2018/07/17/chinas-ride-hailing-app-didi-gets-500-million-
fundingfrom-the-paren.html; “How Uber Could Justify a $120 Billion Valuation.” Forbes,
December 3, 2018.
https://www.forbes.com/sites/greatspeculations/2018/12/03/howuber-could-justify-a-
120-billion-valuation/#6c2a57e97f9b. In addition to being given a dominant position in
China’s largest ridesharing firm, Uber China also retained its brand. While Didi did maintain
control of Uber China, Uber would remain within the nation under an independent image.
Uber’s app could still be used in China, and the firm could move forward with its vision of
becoming a globally renowned company despite the fact that its Chinese operations were
now under Didi’s jurisdiction. The agreement also required Didi to invest US$1 billion into
Uber’s global locations. Although Uber had received significantly greater funding in the past,
this contribution would be the largest individual investment Didi had ever made.
Additionally, Kalanick would gain a position on Didi’s board of directors while Wei was
granted a spot on Uber’s board.81 Didi’s acquisition of Uber China altered the ridesharing
landscape for consumers. While consumers had typically been the ones to experience the
benefits of decreased rates and deep subsidies, the acquisition of Uber China would
ultimately mean the undoing of these incentives. By 2017, nationwide ridesharing prices
had increased. For instance, Beijing, Shanghai, and Shenzhen saw 12.4 percent, 17.7
percent, and 22.5 percent increases in fare prices, respectively. Rising prices allowed Didi to
implement a new long-run focus on customer experience, which would ultimately benefit
consumers through enhanced technology, services, and offerings.82 While consumers
would experience long-run benefits, Didi and Uber both saw more immediate gains. Uber
was able to shift its focus away from a losing battle and redirect its energy towards areas of
already established success. At the same time, any success by Didi would result in greater
returns on investment for Uber. A growing global presence has been connected to Uber’s
durability, and a newly secured position in China would promote Uber’s long-run position.
With the hopes of going public soon, Uber had realized that losses in China blemished its
financial statements. By eliminating the threat of concentrated losses, Uber was able to
dramatically enhance its financial position and make itself more presentable to investors. As
a result, Uber received a win in a battle that it would have otherwise lost.83 Most
importantly, this acquisition allowed Didi to realign its position with its original goals and
values. While Didi had remained focus on advancement even in the midst of its competitive
battle, a price war had nonetheless distracted the firm from its original intentions. The Wall
Street Journal noted that the elimination of this competitive threat, “freed up substantial
resources for bold initiatives focused on the future of cities: from self-driving technology to
food and logistics.”84 While each party benefited substantially, this acquisition did Page 568
12. bring about concerns. The monopolistic power that Didi had acquired through this merger
was immediately subjected to antitrust concerns. Large market dominance and substantial
funding meant that no newly emerged competitor would be able to reasonably compete
with Didi, and China’s antitrust regulators quickly found fault with this monopolistic
authority. By the end of 2016, China’s Ministry of Commerce had announced that it would
investigate Didi’s position.85 A New Global Leader The success Didi experienced within
China secured the firm’s position as a global ridesharing leader, and future initiatives will
only further strengthen the firm’s image.86 Didi’s profound knowledge of city congestion
and its development strategies, which have proven successful, are expected to be leveraged
in the next phase of growth. China is the only nation with over 100 cities that have a
population of at least 1 million, and Didi’s familiarity with transportation logistics in such a
dense area will ensure success in other populous markets.87 With over 550 million users
and 31 million drivers, Didi has learned how to successfully handle volume, and as the firm
expands, it should be able to easily control any costs associated with increasing its size.88
The growing appeal of international expansion can also be linked to the growing threat of
competition within China. While the superiority of Didi’s operations have historically led to
a near dominance within this market, new rivals continuously emerge in attempts to
weaken Didi’s authority. For instance, Alibaba-owned mapping firm, AutoNavi, has recently
challenged Didi with its own ride hailing service. This young ridesharing firm has leveraged
its strong backing from Alibaba and has begun implementing its own City Brain platform,
which takes advantage of its proprietary transportation data to improve ride logistics.89
Didi is facing growing competition in all aspects of its business. For instance, Meituan
Dianping has recently overtaken Didi’s title of world’s largest food delivery servicer by
withdrawing from ridesharing to solely focus on delivery. Niche competitors are taking on
specialized challenges and are finding creative ways to attack specific aspects of Didi’s
service lines. Furthermore, new competitors have mainly been domestic, and these firms
have deep local knowledge and stronger cultural appeal, something which Uber never
challenged Didi with. While these young firms may not possess the same size and authority
as Uber, local synergistic advantages put them in an ideal position to challenge Didi.90 Didi
currently manages three distinct research and development centers in which it funnels
investments into vehicle logistics. While Didi’s engineers and data scientists have made
significant strides in hardware improvements, most of the firm’s research involves software
advancement and data collection. Self-driving vehicles and electric cars have been given a
longterm focus, and current ventures in data manipulation have allowed Didi to grow its
present position. Investments have allowed Didi to capture realtime data, which it then uses
to maximize travel routes and ride times. Today, the firm’s research mostly involves smart
learning, and practices such as artificial intelligence, computer vision, and natural language
processing all aim at bettering the user experience in anticipation of new competitive
battles.91 Dominance within China, a history of growth, and a strong technological position
will fuel Didi’s next wave of expansion. Partnerships appear to be only one aspect of Didi’s
global endeavors, and the firm aims to enter foreign markets under its own brand. While
Didi has emphasized growth, unlike Uber, it has been much less aggressive with expansion.
Strategic investments and partnerships contrast significantly from Uber’s strategy of
13. entering independently and using price cuts to knock down local competitors. While Uber
has seen success in this strategy, it has seen just as much failure. As Didi moves forward, it
believes that its cautiousness will allow it to avoid Uber’s mistakes, and one Didi
spokesperson noted that, “Didi is pursuing a flexible approach to international expansion
rather than a one-size-fits-all strategy.” While Uber has aimed for entrance speed, Didi
realizes that a flexible long-term strategy will avoid conflicts and generate defendable
growth, something which Uber lacks in many of its markets.92 Reigniting a War As Didi
advances towards global ridesharing dominance, it finds itself once again running into
conflicts with Uber. Unlike in China, however, Didi has now become the aggressor.93 With a
new focus on international expansion, Didi has targeted Mexico as its first independent
location outside of China. However, opposition follows expansion, and this time around,
Uber is the local monopolistic leader. With an estimated 87 percent market share, Mexico is
one of Uber’s most profitable and protected global locations. Like Didi’s position in China,
Uber dominates within Mexico, and there are no clear local competitors for Didi to partner
with even if it wanted to. Mexico is also the fourth largest market for Uber in terms of users,
and only the U.S., Brazil, and India rival the nation’s volume. While Didi has been attacking
Uber’s dominance within its other principal markets, all of Didi’s past oppositions have
been through partnerships. Since its 2013 entrance, Uber has invested over US$500 million
into Mexico, and stronger blockades have been recently built in anticipation of Didi’s
arrival.94 Didi has hit the ground running as it enters Mexico, and dynamic tactics have
quickly allowed the firm to gain a strong reputation within the nation. For instance, Didi has
been aggressively poaching top employees from Uber’s Mexican management team in order
to gain insider information on Uber’s tactics and strategies. Didi employees have also been
Page 569 registering as Uber drivers and passengers and are riding incognito within Uber
vehicles in order to gain insight into Uber’s operations. Speaking with Uber’s users and
employees has given Didi firsthand accounts of the flaws and strengths of Uber’s services,
and Didi plans on tailoring its products around Uber’s flaws. With this information, Didi has
announced a wider array of services, and the firm hopes to expand into popular Mexican
transportation alternatives such as bikes, scooters, and motorcycles, all of which Uber has
yet to offer.95 Didi has also used driver feedback to alter fee collection processes, and the
firm announced that it would not be accepting cash payments within Mexico. Didi hopes
that electronic payments will help the firm attract drivers, especially considering that
thieves have recently begun targeting Ubers for the surplus cash they tend to have on hand
during rides. Subsequently, Didi believes that its heavy investments in data collection and
ridesharing technology will ensure quicker, more superior services. Didi has been highly
methodical as it enters Mexico, which varies greatly from the “expand now, plan later”
strategy that Uber used in China. As a result of careful planning, Didi has already begun to
successfully rival Uber’s position.96 Despite well-thought out tactics and past successes
against Uber, a difficult situation lies ahead for Didi. Rivaling Uber in Mexico is
fundamentally different than anything Didi has ever attempted. Mexico is Didi’s first effort
at building an operation without any partnerships, and Didi will have no local authority to
guide it through this competitive battle. One analyst noted that, “It is fundamentally
different when you’re jumping across an ocean,” and Didi’s lack of experience with local
14. regulatory and cultural complexities may impede the firm. It is already clear that the firm
has much to learn about western lifestyle. For instance, while recruiting Uber employees,
Didi reportedly hosted interviews during the week of Christmas, a time where most of
Mexico is on vacation. Didi thus far has had difficulty altering its image, and this difficulty is
only exacerbated by the fact that Latin American consumers tend to prefer U.S. brands over
Chinese ones. As a result, Chinese companies have historically struggled in Latin America.
Furthermore, rather than competing on price, Didi hopes that improving services, safety,
and speed will attract customers, yet the Mexican market already appears to be highly price
dependent. To be successful within Mexico, Didi will have to completely alter its image and
step away from its heritage; however, this may prove to be difficult for the firm, especially
considering the success that its culture has brought it during past fights against Uber.97
Uber is prepared to do whatever it takes to retain its dominance. Whether it be increasing
spending on marketing and customer acquisition or investing more heavily in service
offerings and technology, Uber is equipped for the long run. While Didi does have significant
bankroll, the firm may still have difficulty overcoming the complexities of market
expansion. With positions flipped, foreigner Didi will now have to fight against the
advantages that allowed it to succeed in China. While Didi believes that an established
position in China will allow it to overcome any struggles that international expansion may
present, Didi’s efforts may nonetheless end up paralleling those of Uber. As the two firms
prepare for the next battle, the only certainty is the clash—yet the experiences that Didi and
Uber have learned from China may guide them in what is to come. Questions for Review 1.
What was so appealing about the Chinese ridesharing landscape? Specifically, why did Uber
want to enter China? 2. What are some potential threats that American firms face when
conducting business within China? In your opinion, do you think these concerns discredit
entrance? 3. What advantages did Didi have to help it win its competitive battle with Uber?
4. What were some of the benefits Didi and Uber China received by merging? Can you think
of any potential detriments? 5. Compare and contrast Uber and Didi’s expansion tactics.
Going forward, do you think Uber should reevaluate this strategy? Provide justification for
both sides of the argument. 6. Do you believe Didi or Uber has a more stable financial
outlook? Why? Exercise After working for Uber Mexico for nearly five years, you and a few
other members of Uber Mexico’s senior management team have been recruited by Didi
Chuxing’s Global Expansion group. Attracted by Didi’s cultural environment and a higher
salary, you decide to leave Uber. Didi is eager to gain insight into Uber’s cultural
environment, and as your first assignment, you have been tasked with assessing and
analyzing your previous employer. Specifically, you have been asked to carefully consider
and evaluate Uber’s leadership team and the company culture that they foster. What has
Uber’s management team been doing well, and what weaknesses can Didi capitalize on in
order to make its own company more appealing? Finally, given your experience with Uber’s
Mexican operations, your new employer also asks you to evaluate the cultural landscape
and business environment of Mexico. In relation to Uber, what has the company done right
in Mexico, what should Didi attempt to replicate, and what mistakes can Didi avoid? How
can Didi’s leadership adjust its offerings to be more culturally relevant? This case was
prepared by Matthew Sepe of Villanova University under the supervision of Professor
15. Jonathan Doh as the basis for class discussion. ENDNOTES 1. Page 570 “Didi Completes
7.43b Rides in 2017,” China Daily, September 1, 2018,
http://www.chinadaily.com.cn/a/201801/09/WS5a541c98a31008cf16 da5e76.html. 2.
Shlomo Freund, “A Short History of Uber in China: Was It a Failure,” Forbes, August 15,
2016, https://www.forbes.com/sites/shlomofreund/2016/08/15/a-shorthistory-of-uber-
in-china-was-it-a-failure. 3. Leslie Hook, “Uber’s Battle for China,” Financial Times, June
2016, https://ig.ft.com/sites/uber-in-china. 4. Jon Russell and Ingrid Lunden, “Confirmed:
Didi Buys Uber China in a Bid for Profit, Will Keep Uber Brand,” TechCrunch, 2016,
https://techcrunch.com/2016/08/01/Didi-Chuxing-confirms-it-isbuying-Ubers-business-
in-china. 5. “Didi Completes 7.43b Rides in 2017.” 6. Laura Wood, “Chinese Ride Sharing
Market 2017-2018 & 2025,” Cision, June 6, 2018,
https://www.prnewswire.com/newsreleases/chinese-ride-sharing-market-2017-2018–
2025-majorplayers-are-didi-dida-aa-pinche-laihui-and-tiantian-300661068.html. 7.
Sherisse Pham, “China’s $30 Billion Ride-Hailing Market Could Double by 2020,” CNN
Business, May 15, 2018, https://money.cnn.com/2018/05/15/technology/china-ride-
hailingmarket/index.html. 8. “Reducing Traffic Congestion and Emission in Chinese Cities,”
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“Didi Chuxing Invests in Brazil Rival 99,” CNBC, January 4, 2017,
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Bernard Marr, “AI in China: How Uber Rival Didi Chuxing Uses Machine Learning to
Revolutionize Transportation,” Forbes, November 26, 2018,
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16. Using Its New AI Brain to Crack the Toughest Puzzle, Our Cities,” Technode, January 26,
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First Half of Year,” Financial Times, September 10, 2018,
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Mike Isaac, “Inside Uber’s Aggressive Unrestrained Workplace Culture,” New York Times,
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workplaceculture.html?module=inline. 50. Yibo Dai, “Why Uber Survives and Thrives in
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Lazo, “Cab Companies Unite against Uber and Other Ride Share Services,” Washington Post,
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against-uber-and-other-ride-share-services. 53. Dai, “Why Uber Survives and Thrives in
China.” 54. Davey Alba, “Uber Hits 2 Billion Rides as Growth in China Soars,” Wired, July 18,
2016, https://www.wired.com/2016/07/uber-hits-2billion-rides-growth-china-soars-now.
55. Hook, “Uber’s Battle for China.” 56. Ibid. 57. Deborah Findlings, “What Stands between
Uber and Success in China,” CNBC, September 15, 2015,
https://www.cnbc.com/2015/09/15/what-stands-between-uber-andsuccess-in-
china.html. 58. Colley, “How Uber Crashed in China.” Page 572 59. “Uber Losing 1 Billion a
Year to Compete in China,” Reuters, February 18, 2016,
https://www.reuters.com/article/uberchina-idUSKCN0VR1M9. 60. Rebecca Feng, “Uber
China Hopes to Gain Market Share by Entering Travel Industry,” Forbes, June 22, 2016,
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market-share-by-entering-travelindustry/#15fefa8a357e. 61. Hook, “Uber’s Battle for
China.” 62. Colley, “How Uber Crashed in China.” 63. Sophia Yan, “Uber Is Losing 1 Billion a
Year in China,” CNN Business, February 19, 2016,
https://money.cnn.com/2016/02/19/technology/uber-losing-1-billionchina/index.html.
64. Russell, “China’s Top Two Taxi-Hailing Services Confirm That They Will Merge.” 65.
Hook, “Uber’s Battle for China.” 66. Charles Riley and Shen Lu, “Uber Is Planning a Huge
18. Expansion in China,” CNN Business, September 8, 2015,
https://money.cnn.com/2015/09/08/technology/uberchina/index.html. 67. Eva Dou, “Didi
Says It Turns a Profit in More Than Half Its Cities,” Wall Street Journal, June 3, 2016,
https://www.wsj.com/articles/diditurns-a-profit-in-more-than-half-its-cities-executive-
says1464932408. 68. Erik Crouch, “China’s Ride Wars: Uber vs. Didi,” Tech in Asia, October
30, 2015, https://www.techinasia.com/infographic-didikuaidi-uber. 69. Deborah Findlings,
“What Stands between Uber and Success in China,” CNBC, September 15, 2015,
https://www.cnbc.com/2015/09/15/what-stands-between-uber-andsuccess-in-
china.html. 70. Biz Carson, “9 Incredibly Popular Websites That Are Still Blocked in China,”
Business Insider, July 23, 2015, https://www.businessinsider.com/websites-blocked-in-
china-20157#facebook-4. 71. Deborah Findling, “What Stands between Uber and Success in
China?” CNBC, September 15, 2015, https://www.cnbc.com/2015/09/15/what-stands-
between-uber-andsuccess-in-china.html. 72. Rebecca Feng, “Uber China Hopes to Gain
Market Share by Entering Travel Industry,” Forbes, June 22, 2016,
https://www.forbes.com/sites/rebeccafeng/2016/06/22/uber-chinahopes-to-gain-
market-share-by-entering-travelindustry/#15fefa8a357e. 73. Sarah Buhr, “China’s Didi
Kuaidi Put 100M into Lyft, Inks Ridesharing Alliance to Rival Uber,” TechCrunch, 2015,
https://techcrunch.com/2015/09/16/ubers-rivals-didi-kuadi-and-lyftform-international-
ridesharing-partnership. 74. Julia Love, “Apple Invests 1 Billion in Chinese Ride Hailing
Service Didi Chuxing,” Reuters, May 12, 2016, https://www.reuters.com/article/us-apple-
china/apple-invests-1billion-in-chinese-ride-hailing-service-didi-chuxingidUSKCN0Y404W.
75. James Crabtree, “Didi Chuxing Took on Uber and Won. Now It’s Taking On the World,”
Wired, February 9, 2018, https://www.wired.co.uk/article/didi-chuxing-china-startups-
uber. 76. Rick Carew, “The Road to the Uber Didi Deal,” Wall Street Journal, August 2, 2016,
https://www.wsj.com/articles/the-road-to-the-uberdidi-deal-1470129702. 77. Avery
Hartmans, “Here’s What Made Didi Finally Want to Merge with Uber in China,” Business
Insider, August 2, 2016, https://www.businessinsider.com/why-didi-merged-with-uber. 78.
Carew, “The Road to the Uber Didi Deal.” 79. “Didi Merger with Uber Grows Monthly Active
User Base by 40% in China,” NewZoo, https://newzoo.com/insights/articles/didi-merger-
with-uber-grows-monthly-active-user-base-by-40-in-china. 80. Carew, “The Road to the
Uber Didi Deal.” 81. Alyssa Abkowitz, “Uber Sells China Operations to Didi Chuxing,” Wall
Street Journal, August 1, 2016, https://www.wsj.com/articles/china-s-didi-chuxing-to-
acquire-rivaluber-s-chinese-operations-1470024403. 82. Josh Horwitz, “One Year after the
Uber Didi Merger, It’s Only Getting Harder to Hail a Ride in China,” Quartz, August 3, 2017,
https://qz.com/1045268/one-year-after-the-uber-didi-merger-its-onlygetting-harder-to-
hail-a-ride-in-china. 83. Jon Russell, “Uber’s Deal with Didi Is a Win-Win for Everyone
Except the Anti Uber Alliance,” TechCrunch, 2016,
https://techcrunch.com/2016/08/01/ubers-deal-with-didi-is-a-winwin-for-everyone-
except-the-anti-uber-alliance. 84. Alyssa Abkowitz and Rick Carew, “Uber Sells China
Operations to Didi Chuxing,” Wall Street Journal, August 2016,
https://www.wsj.com/articles/china-s-didi-chuxing-to-acquire-rivaluber-s-chinese-
operations-1470024403. 85. “Didi Uber Merger under Antitrust Investigation,” Xinhua,
November 11, 2016, http://www.xinhuanet.com/english/201811/16/c_137611764.htm.
19. 86. Lucinda Shen, “After Soft Bank Investment, Uber Is No Longer World’s Most Valuable
Unicorn,” Fortune, January 20, 2018, http://fortune.com/2018/01/19/uber-softbank-didi-
worth-mostvaluable-startup. 87. Company Info, Uber,
https://www.uber.com/newsroom/companyinfo. 88. Jane Zhang, “Didi By the Numbers,”
South China Morning Post, January 23, 2019,
https://www.scmp.com/tech/startups/article/2181542/didi-numbers-ride-hailing-firm-
covered-moremiles-2018-5-earth. Page 573 89. Masha Borak, “Alibaba’s AutoNavi Launches
Ride Hailing Service in Bid to Become a Mobility Mega Platform,” Technode, July 11, 2018,
https://technode.com/2018/07/11/alibaba-autonavi-amapride-hailing. 90. Yingzhi Yang,
“Meituan Dianping to Halt Ride Hailing Expansion in China Amid Crisis at Industry Leader
Didi,” South China Morning Post, September 6, 2018,
https://www.scmp.com/tech/enterprises/article/2162926/meituandianping-halt-ride-
hailing-expansion-china-amid-crisis. 91. Bernard Marr, “AI in China: How Uber Rival Didi
Chuxing Uses Machine Learning to Revolutionize Transportation,” Forbes, November 26,
2018, https://www.forbes.com/sites/bernardmarr/2018/11/26/ai-in-chinahow-uber-
rival-didi-chuxing-uses-machine-learning-to-revolutionizetransportation/#78911ad06732.
92. Josh Horwitz, “This Ride Hailing Giant’s Global Expansion Playbook Is the Opposite of
Uber’s,” Quartz, February 9, 2018, https://qz.com/1203151/didis-global-expansion-
playbook-is-theopposite-of-ubers. 93. Sara O’Brien, “Uber Says It Lost 1.8 Billion in 2018,”
CNN Business, February 15, 2019, https://www.cnn.com/2019/02/15/tech/uber-2018-
financialreport/index.html. 94. Julia Love, “Uber Says It Has Invested 500 Million in Mexico
Since 2013,” Reuters, July 18, 2018, https://www.reuters.com/article/usmexico-
uber/uber-says-it-has-invested-500-million-in-mexico-since2013-idUSKBN1K80AJ. 95.
Julia Love and Heather Somerville, “How China’s Ride Hailing Giant Didi Plans to Challenge
Uber in Mexico,” Reuters, March 19, 2018, https://www.reuters.com/article/us-uber-didi-
mexico/howchinas-ride-hailing-giant-didi-plans-to-challenge-uber-in-
mexicoidUSKBN1GV0E0. 96. Ibid. 97. Ibid. Page 574 In-Depth Integrative Case 4.2 Chiquita’s
Global Turnaround On January 12, 2004, Chiquita named Fernando Aguirre as the
company’s new president and CEO, replacing Cyrus Freidhem, who had held the position
since the company’s emergence from bankruptcy in March 2002. In his 23 years with
Cincinnati-based Procter & Gamble (P&G), Aguirre served in a variety of positions, including
president of P&G Brazil and president of P&G Mexico. In his first remarks to Chiquita
employees and investors, Aguirre reiterated the importance of corporate responsibility: “In
terms of managing businesses and people, while I am profit-conscious, I make Essay 1 Uber
China Nowadays, the appearance of new transportation companies such as Uber is
revolutionizing. Uber has led the transformation in how people travel. The effectiveness of
traffic in large cities is a widespread issue worldwide as many people flocked to Chinese
cities, Uber grasped the opportunity to join the Chinese market. Uber was able to access the
market quickly because of its cutting-edge technology and astute localization tactics. To
ensure the smooth development of their business, Uber China made considerable efforts to
interact with the Chinese authorities. Although local online transportation service Didi Taxi
was a formidable rival of Uber, Uber nonetheless had much faith in growing its business in
China. In this paper, we will discuss the purpose of Uber’s China expansion, Didi’s
20. competitive advantages over Uber, and the benefits and drawbacks of its merger with Uber
China. Why Uber Desired to Enter China? Due to the possibilities in the country, Uber sought
to enter the Chinese market. The population of China’s metropolitan areas is expanding as
technology has taken over as the country’s economic engine. China also boasts some of the
most robust transport networks, rendering it a desirable market for ridesharing services
such as Uber. Despite the fact that many individuals have poured into the city in search of
greener pastures, we have not witnessed a growth in available transit modes. A
transportation gap has also been created as a result of taxis’ inability to cope with the area’s
tremendous economic growth. Much more important was the realization that China was
tackling the problem of pollution caused by transportation (Liu & Kim, 2018). Uber saw the
potential to solve the problem and made the commitment to lessen pollution and
congestion. How Didi Had an Edge over Uber in Terms of Competition? Didi is China’s most
valued ridesharing company, with approximately 83% market dominance. Didi had a
commanding lead when Uber stepped into the market, making it challenging to thrive. Uber
has huge expectations in China due to the country’s booming market. The fact that Didi was
backed by Tencent, the Asia-Pacific’s most profitable firm, gave it an edge against Uber (Cai,
2020). Didi profited from a multitude of resources thanks to this assistance. The resources
needed to fight Uber in the Chinese market were available. Hence, the rivalry between Didi
and Uber lasted longer as a result of it. WeChat Payment quickly draws many new
customers due to its ease and Didi working together. After three years of growth, Didi had
amassed a sizable user base that significantly exceeded that of Uber. As a result, a high client
density made it possible for drivers to accept orders at any time from a closer location. DIDI
cab, a holistic one-stop consumer transportation system with a variety of local and
commercial services, posed a significant threat to Uber China. Benefits and Drawbacks of
Didi and Uber China Merging The Uber and Didi merger had both pros and cons. The merger
allowed Uber to grow its market share, which is a benefit. When Uber originally came into
the market, it only had 1% of the total client base. After joining Didi, the company currently
has a 12.8% market position (Yang & Zeyi, 2021, June 11). Although a merger was not
Uber’s first plan when it entered the Chinese market, its current state and government rules
made it challenging for the company to survive without joining forces with the largest
ridesharing company. The fact that Uber was destined to lose in the Chinese market is also
essential to assess the benefit of the Uber-Didi merger (Singh et al., 2020). As was
previously said, numerous international businesses have experienced the same outcome.
While China may be excited to welcome a foreign corporation to help fund its
transportation, it was unlikely to allow a foreign firm to take over such a crucial component
of its infrastructure. Because Didi had powerful parents, even if they may have established
the correct contacts with the appropriate authorities, it was no match for Didi. Didi also
benefitted by arriving first (Huimei & Yadi, 2018). Being the first to arrive gives the first
firm as many shares as feasible before the second firm arrives. It made it obvious that Didi
would prevail regardless of Uber’s efforts. Therefore, merging was advantageous for both
businesses. Conclusion In conclusion, Uber approached the Chinese market with no solid
strategy for how it would succeed. The corporation had several difficulties when it
expanded into China. Before the business was forced to join with Didi, a spate of setbacks
21. and bad circumstances led to more issues. There were several benefits and drawbacks to
the merger. Uber grew its customer base on the perks side thanks to the merger.
Additionally, the businesses that funded Uber and Didi, Tencent and Didi, generated
enormous profits. Uber’s plans to control the Chinese market were put to rest by the
merger. Uber management’s aggressiveness is to blame for the company’s audacious
decision to enter China. Nonetheless, a contributing factor to its failure was management’s
animosity against its employees. References Cai, J. (2020). The sharing economy and China’s
antimonopoly law: from the Didi case to regulatory challenges. Asia Pacific Law Review,
28(1), 159-178. Huimei, W., & Yadi, L. (2018, July). Comparative Analysis of Didi and Uber
App. In International Conference on Frontier Computing (pp. 1286-1291). Springer,
Singapore. Liu, Y., & Kim, D. (2018). Why did Uber China fail in China?–Lessons from
Business Model Analysis. Singh, G., Dwesar, R., & Kumar, S. (2020). Uber’s bumpy ride in
China. The Case Journal, 16(2), 185-214. Yang, S. L., Zeyi. (2021, June 11). Everything you
need to know about the DiDi IPO. Protocol. https://www.protocol.com/china/didi-ipo-
everything-to-know Essay 2 How Didi Fought Uber in China and Won The mission of Uber
Technologies Inc. is to avail transportation for all individuals everywhere through
contracting drivers to offer passengers trips at a fee. The determination of Uber to enter and
conquer the Chinese market was motivated by the aggressive personality of the CEO and co-
founder, Travis Kalanick, who aims to achieve tremendous organizational growth (Luthans
& Doh,2018). Travis was highly interested in ensuring that Uber gets incorporated into the
Chinese market. As a result of high competition due to the introduction of ride-hailing
companies, Uber faced a lot of competition both domestically and internationally. Since
Uber forecasted this potential trend, it saw the need to establish its operation base in China,
one of the world’s greatest financial markets. China, which is projected to have 221 cities
with a population of more than a million each, was thus considered a highly attractive
market for Uber. As of 2014, there were 113 cars for every 1000 individuals, indicating that
even though there is an availability of effective transport systems, there was a high demand
for private-hire cars (Liu & Kim,2018). Upon entry into the Chinese market, Uber targeted
English-speaking foreign expatriates that lived in China. This was meant to supersede other
private providers of transportation that were Chinese-speaking. However, this strategy
made Uber attract a smaller market share, further expanding locally (Luthans & Doh,2018).
The merger between Didi Dache and Kuaidi Dache to form Kuaidi Dache led to bolstered
drives by one million in 360 Chinese cities in China. On the downside, Uber had only
accumulated 100000 drivers in 20 cities. Customers had to validate their credit cards before
opening an Uber China account. This and many more challenges prompted Uber to form a
merger with Baidu, which is a renowned company in China. The ride-hailing market of
China was full of potential, thus prompting Uber to tap into it and establish itself as the first
foreign provider of private transportation in the region. However, the merger between Didi
and Kuaidi to form a monopoly was greatly challenging for Uber. The merger challenged
Uber China’s business model, which maintained its cost profits by keeping its costs low and
only deducting a mere 25 % from customers (Liu & Kim,2018). Uber later took up the
business model of Didi after a huge price war and started providing its drivers with
subsidies at the cost of customers. This made the company experience fiscal losses. Uber
22. China thus conjoined with Didi, which enabled passengers to pay in cash which was a great
advantage to the locals who could not make cash payments. References Luthans, F., & Doh, J.
P. (2018). International management: Culture, strategy, and behavior. McGraw-Hill. Liu, Y.,
& Kim, D. (2018). Why did Uber China fail in China?–Lessons from Business Model Analysis.
Essay 3 How Didi Fought Uber in China and Won The Chinese market was very appealing to
Uber for some reasons. The country’s large population creates a large potential customer
base for Uber’s services. Additionally, China’s urban areas are overgrowing, so there is a
growing need for efficient transportation options like Uber. China is a relatively untapped
market for Uber; the company had very little competition there, which meant that it had a
good chance of becoming a dominant player in the Chinese transportation landscape (Ma &
Long, 2020). Moreover, the Chinese government had been investing heavily in
infrastructure projects, which created opportunities for new companies like Uber to enter
the market and grow. Didi had some advantages that helped it win its competitive battle
with Uber. First, Didi was a homegrown Chinese company, which meant that it was more
familiar with the Chinese market and better understood how to appeal to Chinese
consumers (Lee, 2018). Additionally, Didi had a strong alliance with Alibaba, which gave it
access to a large amount of capital and a broad customer base. Didi benefited from the fact
that Uber was struggling in other markets; this made it easier for Didi to win over Chinese
consumers who were looking for an alternative to Uber. Finally, Didi benefited from the
support of the Chinese government, which was eager to see a Chinese company succeed in
the ride-sharing market. The merger between Didi and Uber China has several pros and
cons. One pro is that it creates a more efficient transportation market in China, as the two
companies will now be able to share resources and avoid duplicating efforts. Additionally,
the merger could help to create a more level playing field for foreign companies doing
business in China, as it will be difficult for the Chinese government to favor one company
over another if they are part of the same company. However, there are also a few potential
cons to the merger. First, it could lead to higher consumer prices, as the two companies will
now have less incentive to compete on price. Additionally, the merger could lead to reduced
innovation, as the two companies will now have less incentive to invest in new technology
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