Whilst Uber may be flourishing in most markets, the same cannot be said for its China business, where the company faces fierce competition from Didi Kuadi.
Speaking to Canadian tech news site Betakit, Uber’s chief executive Travis Kalanick revealed that business in China is highly challenging, and that Uber has not posted a positive return since setting up shop in the country.
“We’re profitable in the USA, but we’re losing over US$1 billion a year in China,” noted Kalanick. “We have a fierce competitor that’s unprofitable in every city they exist in, but they’re buying up market share. I wish the world wasn’t that way.”
As a local establishment, Didi Kuadi enjoys the support of Chinese tech giants Tencent and Alibaba. The company has also recently begun partnering with Uber’s rival Lyft.
Responding to Kalanick’s claims, a spokesperson for Didi Kuadi stated that the company simply benefited from its larger size, and now operates in 400 cities. “Smaller competitors have to bleed subsidies to make up for their insufficient driver and rider network.”