Car hailing service Uber is pouring money into its China operations and is seeking a license to operate legally in Shanghai, with fierce competition from local rival Didi Kuaidi. Meg Teckman reports.
China - the big prize for Uber. But is the ride hailing app actually winning on the mainland? The company says it's raised over a billion dollars to push into 100 more Chinese cities within the next year. But it faces tough competition from homegrown rival - Didi Kuaidi. With backing from Internet giants Tencent and Alibaba, Didi Kuaidi may have a leg up on Uber navigating the murky waters of their legal status in Chinese cities. But Uber is offering huge subsidies for Chinese riders and drivers in order to compete with Didi Kuaidi. Analysts say it is an expensive strategy but that Uber has won some recognition there. But Didi Kuaidi still has 80 percent marketshare, and is eyeing opportunities abroad - investing 100 million dollars into Uber's U.S. arch-rival - Lyft. Uber has recently accused Lyft being involved in a massive hack attack earlier this year. ENDS