Uber Gets 1M Rides in China Daily, More Than Rest of World Combined
Uber logs a staggering 1 million rides a day in China, more than it does in the rest of the markets it operates in combined. However despite the app's runaway success in the world's most populous country, it still has its sights set on bigger things.
In a recently leaked letter to investors acquired by the Financial Times, Uber CEO Travis Kalanick details the company's expansion plans in China over the next few years. At present Uber is available in 11 Chinese cities, with 14 million people total living in them. Kalanick's letter notes the multitude of untapped markets that still exist in China:
"there are 80+ cities with over 5 million people, over the next year we plan to launch in 50 of those Chinese cities. This kind of growth is remarkable and unprecedented. To put it frankly, China represents one of the largest untapped opportunities for Uber, potentially larger than the U.S. Success in China, however, takes commitment over the long haul and a strong will, coupled with a unique understanding of the differences in China."
In just 9 months, Chinese cities Gunangzhou, Hangzhou and Chengdu have broken into Uber's top 10 cities ranking. Eclipsing markets like New York, where Uber has been operating for four years already.
However Uber's Chinese expansion will not go unopposed. Bloomberg reports that already, similar Chinese based ride sharing and taxi apps backed by giants like Alibaba are trying to raise funds to give Uber a run for their money.
Xiaju Kuaizhi Inc. is trying to amass $1.5 billion to challenge Uber on its home turf. The current king of China's transport app market is Didi Kuaidi, which holds an impressive 78% of the total market according to industry analyst Analysys International.
