Uber China Case Study

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I. Unpredicted obstacles Uber met in China
Uber China have encountered greater difficulties than ever. Besides of the government regulation, which is a universal obstacle they have met in most of countries, there are two major competitors in China before Uber’s entrance, one of them is called Didi, and the other is Kuaidi. They had occupied a large portion of market share and finally merged on Valentines’ Day of 2015. Since then, they were renamed as Didi Chuxing, owning more than 80% market share. Another thorny problem is fake-order fraud, which means that when one is asking for a ride and the other is assigned, they don’t actually make the ride happen, so that the driver can get subsidies without any cost. It is estimated that 30%-40% daily
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Uber just stepped in right in time, and took this opportunity to cooperate with Baidu, the biggest search engine company in China. As Li Yanhong, the CEO of Baidu, says that “We aim to explore an efficient way for more and more Chinese and American internet enterprises to follow.” And it is possible to a brand-new era of strategy integration is on the way.
¬ Shifting of consumers towards convenience create huge demand
As the increase of average salary, Chinese now are no longer just tending to satisfy their basic needs, but taking convenience and high quality services into account too. Numbers of life service startups keep springing up, including fast car wash service, shopping delivery service, even hot pot delivery service in available now. Under the circumstances, Uber has a good opportunity to occupy this dynamic market by providing quality services.
¬ Smartphone is widely used in China
Nowadays, smartphones are widely used by Chinese urban consumers to satisfy all kinds of consumptions and requirements, combined with increasing internet penetration, placing order on application and enjoying superior service is the most acceptable way of going round in

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