uber china

Uber Announces Massive Expansion in China

100 new cities in China to be covered by the service

Ride-sharing service Uber will expand its Chinese operations to include 100 more cities in the next year, up from its current 20. Uber’s Chief Executive, Travis Kalanick, made the announcement at a Beijing event hosted by its major investor, Baidu. Uber previously announced that it had raised $1.2 billion to fund the expansion, while Chinese rival, Didi Kuaidi, was said to have raised $3 billion.

“When we started this year, we had about one percent market share. Today, nine months later, we’re looking at about 30 to 35 percent market share,” Kalanick said.

Kalanick spoke of the importance of Uber’s relationship with Baidu: “We can get introductions to the city governments, the government officials that want to shepherd our kind of innovation and our kind of progress into their cities,” said Kalanick.

Kalanick also praised China’s harmony and prosperity: “Progress is something we see the government be incredibly open to, whether it be about more jobs and less pollution, less congestion on the streets, better utilization of infrastructure, that kind of progress always has to be in harmony with stability and that is one of the big things that we partnered with the government on,” said Kalanick.

Uber has had a bit of a rough go during its first year of operations in China. Earlier this year, Uber’s Guanghou and Chengdu offices were raided by government officials within a week of each other. Only last month, a Chengdu woman accused an Uber driver of robbing and sexually molesting her.

Finally, and although Uber was not specifically identified, ride-sharing services were blamed for causing last month’s traffic gridlock in Beijing, reported China Daily. “E-hailing services have changed passenger habits on commuting and travel, and the frequent use of private vehicles has put more pressure on rush-hour traffic,” said Wang Yujing, a data analyst at AutoNavi.

Charles Liu

The Nanfang's Senior Editor