Uber Technologies Inc : The organization is burning through more than a billion dollars a year in China as it wages a fierce price war as compared to local rival Didi Kuaidi, its chief executive told. The company’s Chinese business increased its valuation last month to more than USD 8 billion after increasing more than USD 1 billion in its latest funding round, but the US ride-hailing app is still not profitable in mainland China because of the intense competition.
“We’re profitable in the USA, but in china we’re losing over USD 1 billion a year,” Uber CEO Travis Kalanick told in reports Canadian technology platform Betakit. “We have a fierce competitor that’s non profitable in each city they exist in, but they’re buying up market share. I wish the world wasn’t that way.”
The USD 1 billion figure was confirmed by officials of Uber in China Uber and China’s Didi Kuaidi, backed by Chinese technology giants Tencent Holdings and Alibaba Group Holding, have both invest heavily to subsidise fares to gain market share value, betting on China’s Internet-linked transport market becoming the world’s largest.