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Uber is losing $1 billion per year in China while battling competition

by Joey Davidson | February 19, 2016February 19, 2016 9:22 am PDT

Uber

Here in the US, Uber’s closest competition is Lyft, though Uber is absolutely the larger service.

In China, Uber is battling it out with Didi Kuaidi. That ride sharing company has the backing of Alibaba and Tencent, two absolutely massive Chinese companies with their hands dipped in everything.

According to Uber CEO Travis Kalanick during a chat with Betakit, Uber’s “losing over $1 billion a year in China.”

CNN grabbed an Uber spokesperson who confirmed Kalanick’s statement. She offered that Uber has “the sustainable financial strength to win in China in the long-term … while our largest competitor in China spends many multiples of what we do to buy up unprofitable market share.”

As for Didi Kuaidi? Spokeswoman Casper Sun denied the claim that they’re spending so much to “buy up unprofitable market share.”

Uber is doing well globally, for sure. I’m just not certain it can overtake the likes of a company backed by Alibaba and Tencent. Those two powerhouses are worth a lot.

CNN Betakit

Joey Davidson

Joey Davidson leads the gaming department here on TechnoBuffalo. He's been covering games online for more than 10 years, and he's a lover of all...

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