Why Uber Failed in China (PolyMatter)
China legalized ridesharing in 2016, but with strict rules, including banning subsidized rides and requiring drivers to have more than 3 years of experience.
We highlight an interesting overview on why Uber sold it operations in China from PolyMatter. Parts of the video that I think TLC drivers will find interesting.
02:22 Uber approached building its China business as building an entirely new company in China (i.e. Uber China vs. Uber in China).
03:06 Uber initially used Google Maps, which is notoriously bad in China.
03:43 According to Uber, only takes 2.7 rides for customer to become permanent.
05:20 Uber spent $40 to $50 million per week on free rides in China.
06:50 Fraud was a major issue in China as drivers/passengers gamed the free subsidies being given out (i.e. >30,000 fake rides a day in summer of 2015).
08:39 China legalized ridesharing, but with strict rules, including banning subsidized rides and requiring a driver to have more than 3 years of experience.
09:10 After the new rideshare regulations passed in 2016, Uber China was sold to Didi. As part of deal Uber received a ~18% stake in Didi.
