Business, Investments

Uber to Raise $1 Billion to Penetrate Chinese Market

Taxi on call company Uber reportedly intends to make China its largest market by the year end. In order to fulfill this goal, the company is raising funding of $1 billion.

Breaking in the Chinese market seems a tough job as Uber’s competitor Didi Kuaidi dominates the region with a 95% plus market share. Moreover, Uber has to fight the conventional mindset which has tagged it as an ‘outsider company’.

Kuaidi dache and Didi dache are two major Chinese Taxi-on-call services which merged up early this year and formed Didi Kuaidi in order to be the world’s largest cab service provider. The companies are backed by Alibaba holdings and Tencent holdings.

Uber currently operates in 11 cities in China and claims to be taking 1 million trips a day across China, according to Techcrunch.

Uber CEO, Travis Kalanick wrote in a letter to investors that, “Simply stated, China is the #1 priority for Uber’s global team.A combination of operational excellence and a superior product is allowing us to grow significantly faster than our competition.”

The taxi on call giant has raised $5 billion from investors since inception. One of the existing shareholders is a Chinese search giant Baidu, which made strategic investment in the company in December.

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