Uber’s Expansion into China

Uber’s Expansion into China

Uber’s Expansion into China


In 2013, Uber, a car-hailing mobile app company founded in the United States entered the Chinese market. The decision was motivated by the firm’s desire to serve the huge Chinese market as per its global expansion agenda. By the time, the taxi company had a strong footing in 41 countries around the world. However, the Chinese market was not easy to set up as the company had expected. Uber faced fierce competition from other players operating in the country. Most of the rivals were locally owned and comprised of Tencent-sponsored Didi and Alibaba-sponsored Kuaidi. Uber adjusted its services to the preferences of the Chinese customers as a localization strategy. It adopted low costs as a marketing and competing strategy, allowing its customers to enjoy better discounts on fares. The firm also offered subsidies to its drivers to expand its market share. The strategies Uber used failed and it was forced to sell its stake to Didi and exit the Chinese market.

The Merger of Uber-Didi

After enduring stiff competition from local taxi companies for long, Uber realized that its low-cost strategy was not rewarding. The company was forced to dispose of its stake and exit the new market two years later. Before Uber’s entry into China, Didi and Kuaidi were working hard to attract riders and drivers (Reddy, Zheng, Dong, and Mathur n.p). These companies utilized attractive discounts and subsidies to increase their market share. However, after entering China, Uber built a strategic collaboration with Baidu, one of the country’s largest Internet providers in an effort to compete with the two local competitors. Thereafter, Didi and Kuaidi formed a monopolistic merger that became a formidable rival to Uber. Moreover, the new firm controlled more than 95 per cent of the ride-hailing business in China (Reddy et al. n.p.). After investing billions of dollars to change the status quo, Uber discovered that its efforts were futile. In August 2016, the company opted to merge with its competitor Didi, which had acquired Kuaidi a few years earlier. Although the strategy seemed unorthodox, Uber had no choice.

Government Regulations

Uber worked in an environment characterized by tough regulations against foreign firms.  In addition, the country did not have clear laws governing the taxi services, especially those relating to foreign-owned firms (Hook n.p). Uber’s chief executives in the country spent a lot of time to get the necessary operating permits. Coincidentally, Beijing was working on some regulations intended to govern the taxi sector. The focus of the new policies was the different types of taxi service products such as ride-sharing. Some of the earliest drafts of the regulations proposed to prohibit ride-sharing in privately-owned cars (Hook n.p). The lack of clear regulations governing taxi operations in the country made taxicabs and their drivers susceptible to impounding and arrests. In fact, many Chinese drivers offering services to the company believed that Uber was illegally operating in the country (Hook n.p). As a result, most of the company’s drivers avoided routes they expected to meet the police. Its drivers were frequently sharing information regarding new traffic-police checkpoints to avert possible confrontations. The drivers could even force passengers to alight before reaching their destinations whenever they spotted traffic police. In addition, the police could take advantage of the lack of clear policies relating to taxi service sector and the unofficial registration of Uber in the country to raid the company’s offices and frustrate its staff. Some of the company’s drivers arrested by the police were forced to pay large sums of money to regain their freedom. The experiences of some of the customers with the company’s drivers and the widespread belief that its operations were illegal in the country made the taxi service provider lose a huge number of potential customers. Nevertheless, the company was not officially barred from operating in the country. However, some of these experiences discouraged Chinese drivers to work with the firm. The situation was different for Didi and Kuaidi despite the lack of regulatory measures. In fact, the two firms merged and started a similar service in April 2015 (Timmons, n.p.). There was no law that Uber could refer to claim entitlement to this taxi service product.

Market Challenges

Uber’s future in China seemed bleak from the start. The taxi service provider encountered stiff competition from local firms. The situation was made more complicated by the pricing regimes in the country’s taxi industry. Taxi drivers were paid a percentage of the customers’ fares by all firms. However, the commissions Uber offered to its drivers were higher compared to its rivals. The company took 25 per cent of a client’s fare and gave the rest to the driver (Hook, n.d). For this reason, it paid its drivers multiple earnings thereby reducing its profitability. Moreover, it charged its customers less compared to other taxi operators. As a result, it was making losses throughout its operations. In fact, it was losing more than US$1 billion annually in the new market (Wang n.p.). Due to the persistently stiff competition, the company was forced to keep the costs low yet it was making a lot of infrastructure investments (Wang, n.p.). Therefore, it was hard for the company to fund market studies and its operations. The continued competition and losses forced the firm to sell its stake and withdraw from China in August 2016.

Uber late entry to China placed it at a disadvantageous position. At the time of the entry, its rival Didi already had an extensive presence in most of the country’s cities. After settling in the new market, Uber relied on Google maps, which were not effective in China. It later switched to the more effective Baidu maps but it was too late. At the same time, the taxi operator relied on a credit-card-based payment system that was unpopular in China (Hook n.d). The local competitor Didi provided clients with several payment systems including cash and WeChat. These factors show that Uber had not done enough feasibility studies in the new market and was bound to fail in its endeavors to serve the Chinese market.

Uber had challenges accessing internet service providers in the new market. China’s internet sector is different from that of other countries around the world. The complex system made it challenging for western firms to operate in the nation. eBay failed to withstand, Google withdrew, while Amazon has not succeeded in gaining footage in the country. The experiences of these companies indicate that operating in China is almost impossible for western firms. On that note, the expectation was that Uber would eventually be unsuccessful in the nation. In addition, the internet providers’ preference for local firms made the situation worse for Uber. The company also suffered from the challenge of fraud. China accounts for the most sophisticated scams in the ride-hailing industry. Taxi drivers and hackers in the country collaborate to steal from foreign firms. Consequently, Uber suffered huge losses after paying drivers fraudulently.


Uber experienced many challenges in its quest to penetrate the Chinese taxi market. The firm found well established and performing local providers such as Didi and Kuaidi. In response, Uber entered the market and used low-cost services to its customers and paying its drivers huge bonuses. The commissions paid were not based on the money generated by offering services. The losses increased because of fraudulent drivers who collaborated with hackers to manipulate the firm’s phone application. Rivalry increased significantly after Dudi and Kuaidi merged to form a monopolistic company. Uber’s operations were also hampered by the lack of a reliable Internet provider. It was also unable to work with the complicated Chinese internet system. The challenge Uber faced resonated to that of eBay, Amazon, and Google. In addition, the map application the firm used was not operational in China. China also lacked legislation and rules which could facilitate Uber operations in the nation. Therefore, the company was not legally recognized in the country, which made potential clients and service providers cautious. Even after investing a huge sum of money in China and adopting all possible measures to survive in the market, Uber was unsuccessful. Consequently, the company opted to merge with its main competitor Didi in August 2016, ending its operation in China.

Works Cited

Hook, Leslie. Uber’s battle for China. FT Weekend Magazine, June 2016, https://ig.ft.com/sites/uber-in-china/. Accessed 14 April 2019.

Reddy, Srinivas K, Zheng Zack Wang, Dong Deckie He, and Mathur Sarita. Taxi Wars: Uber in China. Center for Management Practice, 2019.

Timmons, Heather. All the things that went wrong for Uber in China. Quarts, 1 August, 2016, ttps://qz.com/746990/all-the-things-that-went-wrong-for-uber-in-china/. Accessed 14 April 2019.

Wang, Helen H. Three lessons from Uber’s defeat in China. Forbes, 12 August 2016, https://www.forbes.com/sites/helenwang/2016/08/12/3-lessons-from-ubers-defeat-in-china/#20de50cc69cb. Accessed 14 April 2019.


Tired of Guidelines or Lack Time to Work on Your Paper, Get Original Custom Research Paper Writing Service

Thecustomwriting.com research paper writing service has saved thousands of students from stressful college life. Writing a custom research paper may be challenging, considering it has to be plagiarism-free. And it is better not to do your project than to hand in plagiarized work or hurriedly complete it if you do not have time.

Academic integrity is so vital that you may get a suspension or an expulsion because of a copy-pasted work. Writing a custom research paper requires research and writing skills to produce original content. Here are essential things to know about getting the best and legit assignments help websites.

Perfection is vital

Every website will promise you that they produce high-quality work. However, you put your money for your end-of-semester paper only to get a pass. You must learn how to identify the best writing service before committing.

Thecustomwriting.com produces quality content at all times. Rather than a quality promise, quality assurance is what you should consider before hiring a research writer. Best writing services are reliable. You don't want to partner with a cheap research paper writing service that will deliver poorly written essays hours after the due date.

Quality writers are part of the best writing service. A company that has untrained writers will fail you. Before committing, ensure that the people who will write your paper are academicians and professionals. It would help if you had a writer who will be prompt to respond to your questions and follow instructions. Writers who do not fear to ask for clarification where they don't understand are the best for you.

Beware of Scammers Posing to Provide Custom Research Paper Writing Service

It may take time and effort to find a legit custom research paper writing service. Most of the websites claiming to offer writing service trades your paper with another student. For example, if you order your paper today to submit it next week, you may find that another student has already handed over the same document.

Your money is gone, you have no paper to submit, and the deadline is in two hours. You can only sit and cook up some stories for your lecturer. Otherwise, wait for a penalty or suspension.

Others will give you half-baked papers in the name of cheap essays. Apart from reselling your paper, some companies will offer you copy-pasted work. If you don't have tools such as Turnitin or Copyscape to check plagiarism, you may find yourself in the dean's office explaining why you copied your work from the internet word-to-word.

We offer one of the best research paper writing services in the USA and the U.K.

You won’t regret choosing Thecustomwriting.com to handle your research. Your project is an essential part of your academic work. It determines whether you will move on to the next semester or if your name will appear on the graduation list. Do not gamble your education by hiring any cheap essay writing website you find on the internet. Look for a custom research paper writing service reviews before commit.

Avoid scandals by hiring Thecustomwriting.com. Count yourself lucky if you are reading this article. You are in the right direction in finding the writing service for your paper. Though many websites could have frustrated you, Thecustomwriting.com is committed to providing you with reliable service for your paper.

Thecustomwriting.com offers quality services at affordable prices, and they deliver your work on time. They have native English writers that write your paper using the correct language.

Plagiarism Free Custom Research Paper Writing Service

Our writers understand the seriousness of writing plagiarized papers. Every institution has regulations that govern how a research project is conducted. Universities and colleges take plagiarism as gross misconduct. The best writing services are those that will deliver plagiarism-free papers.

Plagiarism involves, among others, copying a published work and delivering it to your lecturer as your own without acknowledging the sources.

Another way your work can be plagiarized is the failure to include the source of your content in a research paper. If you are using someone's thought, you need to include a reference and in-text citations to show that you are using another scholars' worker.

It's a gross mistake to write a five-page paper without a single source unless the paper's nature does not require you to rely on any sources. Here are some tips our writers use to avoid accidental plagiarism:

  • Cite direct quotes, statistics, and paraphrased content.
  • Ensure that all in-text citations are included in the biography and vice versa.
  • Directly quoting not more than 2% of the paper, if quoting is necessary (some papers are exempted from this rule, especially literature).
  • Stick to high authority, scholarly sources. Our writers will hardly paraphrase content from third party blogs and other questionable sites.
  • Consider Buying A Custom Research Paper from Thecustomwriting.Com

    Consider hiring an expert essay writer if you are not sure about your capabilities. Referencing and citations can be challenging, especially if you try to do it for the first time. It's even harder when your lecturer asks you to use a hard referencing style. For example, Harvard requires you to include page numbers, dates, and the author's name in the text. If you have several papers with a strict deadline, you should consider hiring a custom research paper writing service to help you work on your essays.

    However, ensure the website you want to hire offers legit writing service. A good website should at least charge for its services. You will find many websites willing to provide you with free services. No one is that idle to sit and write a paper for free. Sites that provide free or cheap services hooks you when you least expect.

    Also, consider the price of writing a paper. Though cheap essays are of low quality, other sites may have inflated prices for their rate, making you needlessly break your bank.

    Thecustomwriting.com understands the need for a fair and reasonable price for most students. We know that most students need service, but they do not have enough resources. We, therefore, offer quality service that you can afford.

    Benefits of using custom research paper writing service

    If this is your first time considering using a custom writing service, the first thing is to know why taking such an action is the best. Choosing Thecustomwriting.com ensures professional writers handle your paper. Letting a qualified person handle your project can boost your grade. You cannot afford to fail in the upcoming end-of-semester project. In any case, your progress to the next level will be determined by how well you perform in your essay.

    Thecustomwriting.com ensures the timely delivery of your work. The good thing about legit essay writers is that they can write your essay within the shortest time possible, with one page taking up to one hour at most. It doesn't matter what time you want your work done: Thecustomwriting.com is always ready for a task.

    We will give you a paper written explicitly for you. We will ensure that your paper is not delivered to someone else.

    Come to think of this; if five of your classmates decide to order an essay for the same class, five writers will be assigned to work on different papers instead of paraphrasing one paper and sending it to five of you.

    Frequently Asked Questions (FAQ)

    Do subject specialist writers handle my research paper?

    It's our responsibility to ensure that someone from your field handles your paper. Our company has enough writers from every discipline. We provide only a research writer qualified in your subject to handle your paper. After placing an order, the first step is to screen the question and requirement and match it with the best writer. The less qualified writer has a college diploma, and they only handle high school papers. All other writers are bachelor, masters, and PhD degree holders.

    Are your researchers qualified enough to know the core of the research?

    We commit to quality content. We understand that failure to deliver quality service will result in the loss of clients. Therefore, we only hire qualified writers who have an in-depth understanding of your paper. Whether you want quantitative research done using Chi-square or qualitative research, Thecustomwriting.com’s writers will comfortably handle any discipline or type of paper. Besides, we offer research paper service from college to PhD. Therefore, we cannot afford to have unqualified writers. Our researchers take every instruction keenly when writing your essay.

    Should I worry about order placement?

    There is nothing to worry about placing your order. Our platform has a simple, user-friendly interface that enables you to navigate to different functionalities with ease. We offer quality custom research paper writing services; thus, you don't have to worry about getting value for your money. Besides, you can track your order's progress. Our system progressively send you email notifications regarding every stage of your orders' progress; thus, you don't even have to log in to track down your order. You will also see the progress on the dashboard when you log in. Moreover, our support team will contact you when the writer needs any clarification.

    Can I have direct communication with the writer after the order placement?

    Our system is designed in such a way that it allows you to communicate with your writer directly. We understand the need to clarify things yourself to the writer. Furthermore, our support team is available 24 hours to ensure that urgent matters are communicated swiftly with the writer.

    Will I get any discount on recommendation?

    The answer is yes. We value your efforts and trust to recommend us to your friends. We will offer you a discount on your next order if a client mentions your email when placing an order.

    What guarantees should customers look for?

    We have a written list of what we guarantee our clients in our terms. We guarantee the quality, confidentiality, free revision, original content, and timely delivery. We also guarantee money-back if, in the unlikely event, you are not happy with the quality of the paper.

    What makes a reliable writing company?

    It's easy to know a reputable company. First, they are transparent about their services. They offer multiple methods of communication and have qualified writers. Most importantly, they deliver your work on time, deliver original content, and honour what they have guaranteed.

    Why should customers not opt for cheap essay writing services?

    Cheap essay services will only waste your time. They have foreign writers who will produce plagiarized content full of grammar errors. You will waste your precious time waiting for a paper that you can't give your lecturer.

    Is buying essays online safe?

    It's safe to buy your essay if you take the right precaution. Before putting your money on a strange site, explore the website to see whether you will get customer reviews. They will help you make the right decision.

    How do I hire someone to write an essay for me?

    These are common questions with most clients. It's effortless to get a professional writer. The first step is to identify a custom research paper writing service that is legit and sign up. After that, they will guide you on how to place your order and get a writer. Some companies will allow you to choose a writer for yourself or choose a writer for you.

    What types of writing services can I order online?

    Our website offers a variety of legit essay services. We provide any academic assistance, including research projects, assignments, and admission letters. Visit our website to see what each service entails.

    What benefits and additional features do Thecustomwriting.com services offer?

    We offer several free services to our customers. We offer free revision, a discount on your first order, and free pages such as references and cover pages. Also, we have a quality control department that ensures that all papers are of high quality before delivering them to you.

    Do websites maintain your privacy? Are orders secured?

    Your privacy is our top priority. You will be recognized by your I.D. assigned to you after signup instead of your name. The only person who can access your account is you or anyone else you give your password. Your payment is through a third party. Therefore, your personal information will never reach our site without your consent.

    What are the pros of ordering from custom writing services?

    You get quality papers. We have writers with decades of experience delivering quality papers worth the client's money and much more. We understand your power to influence our progress. Your paper will be delivered on time and written by professional writers.

    Hire a professional writer

    Now that you know what to look for when considering the custom research paper writing services, it's time to try us. Sign up and get a discount on your first order. You don't have to worry about quality, timely delivery, and price. We know they are essential to you.

    Calculate your order
    Pages (275 words)
    Standard price: $0.00
    Client Reviews
    Our Guarantees
    100% Confidentiality
    Information about customers is confidential and never disclosed to third parties.
    Original Writing
    We complete all papers from scratch. You can get a plagiarism report.
    Timely Delivery
    No missed deadlines – 97% of assignments are completed in time.
    Money Back
    If you're confident that a writer didn't follow your order details, ask for a refund.

    Calculate the price of your order

    You will get a personal manager and a discount.
    We'll send you the first draft for approval by at
    Total price:
    Power up Your Academic Success with the
    Team of Professionals. We’ve Got Your Back.
    Power up Your Study Success with Experts We’ve Got Your Back.