Uber Makes Further Expansion in China

Uber is looking to expand further into China’s lower-tier cities, where business has been growing faster than in top-tier cities. Uber has announced plans to expand its ride-hailing service to 100 Chinese cities this year.

It now operates in nearly 60 cities, including many lower — tier cities also targeted by domestic rival Didi. Uber has secured over $6 billion in its latest funding round.
Liu Zhen, Uber China’s head of strategy, said this month that most of the money raised will be used to fund Uber’s operations in China.
While the company has generated over $1 billion in profits from its top 30 cities, Kalanick said it has not yet made money in any Chinese cities where the company operates, even though it provides more trips in China than any other country.
The strong demand for better transportation in lower-tier Chinese cities also gives Uber more breathing room than in bigger cities, where Didi dominates.
A growing number of automakers are placing bets on ride- hailing firms.

Toyota has invested in Uber, while Volkswagen has bought a stake in Gett in Europe and General Motors has backed Lyft in the United States.
Earlier this month, Didi announced $4.5 billion in equity financing, including $1 billion from Apple.

Leave a Reply

Your email address will not be published. Required fields are marked *