Presented by:

Dwi Saryanto
Muhammad Mirza Maulana
Pasha Rionovan

Launched in
China

Dec 2014 Uber had 162,037 drivers around 311 Cities

worldwide
Dec 2015 Uber completed valuation around $62,5 billion

A Unique Value Proposition

Flexible Fare
A fare would be
generated through a
pricing algorithm and
automatically charged
to the users linked
credit card

Privately-Owned
Without a formal
contract or special
type of certification,
any licensed driver
could sign up with the
company, download
the uber app and earn
money by taking
orders

Uber in China

Join the market in Shanghai mid 2013

Uber had recruited 42,000 drivers
Product Localization(Strategic partnership
with Alibaba-wallet system developed
and Baidu-Baidu maps)
Compete with mayor competitor Didi and
Kuaidis

COMPETITION SECTOR
Other global Market = Uber was undisputed
leader
China Market = Owned by Chineese Taxihailing app Didi and Kuaidi

UBER COMPETITORS
Feb, 14
2015

Did
i

Would not be entirely unrelated

to Uber

Merger :
Maintain
independent
brand

2016 :
- Valued, $ 516.5
billion
- Pool driver, 1.35
million in more 360
cities in China
- 7 million rides per
day

Kuaidi

- 50%, private cars

Raised the
concern of
industry
monopoly
10
months :
Loss over $ 500
million, first five
months on 2015
Subsidies, up to
130%

Yidao
Yongche:
- Filed a
lawsuit

80%, DidiKuaidi

Main Investor of DidiKuaidi :

Tencent for Didi
Alibaba for Kuaidi
Baidu for UberChina

September, 2015 : Didi-Kuaidi

Invest in outside of China
$ 100million in Lyft
Formed strategic partnership
Des 2015, expended
partnership, (Ola India &
GrabTaxi)

Competitor History
First half 2014 both companies burn 2.4 billion yuan (US $400 million) for
market share wars
By the year 2014 market was expanded, combined user-base from both
companies double
End 2014 Both companies control half of the market but didi slight larger
Offering Monetary Incentives to attract new customer

DIDI DACHE

Developed in Beijing by
Xiaoju Technologies
Early market entrant with
initial investment $15
million from giant trench
(we chat) 2013
April and May 2013 user
base tripled 0,69 million to
1,9 million
$100 million funding from
venture capital in 2014

KUAIDI DACHE

Developed in Hangzou by
Kuaizhi Technologies
Bankrolled by Alibaba
(Alipay)

Market share of Uber and Didi Kuaidi in 2015

Customer insight : convenience and lower than taxi prices for both Uber and Didi Kuaidi

Private Car

Other

Uber
Didi
Kuaid
i

Uber

Didi and Kuaidi Merging creating Anti-Uber

Alliance

Monopoly by merging after one year Uber launch in China

(February 14 2015)
After Merge they pour cash to Maintain dominant market
shares
Prior to merger both firm were'nt making money
2015 booked up to 7 million rides per day 50% Rides in
private car
2016 valued US $16.5 Billion commanded a pool of 1.35
million drivers in more than 360 cities in China
September 2015 invested US $100 million in Lyft (Uber's
biggest competitor on its Home turf) and perform strategic
partnership for lyft user to use Didi and Kuaidi in China
Expanding partnership to include Ola (biggest ride sharing
company in India) and GrabTaxi an iTNC values in excess of
US $1 billion that provide service in 6 countries in Southeast
Asia
October 8, 2015 Didi-Kuaidi obtained Shanghai's first
"certificate" for internet based transportation company in

Regulation, society problems and

goverment act
January 2015 Illegal for internet apps to facilitate unlicensed taxis and
followed by several problems

A.

B.

C.

D.

Major protest agains ride-hailing apps like Uber

Police arrest several taxi drivers without a license
Unlicense driver protest the seizure of private vehicles
Chinese authorities seizing equipment and smartphones
Internet-based taxi platforms certificate was developed by
shanghai's transportation departement (certificate for private taxi)
Ministry of transportation issued guidelines reforming China's taxi
industry
Draft of New law "The Operation, Services, and Management of
Internet-based Taxi Companies" (ex = Limitation in price)
November 9,2015 draft law was closed but by the end of the year
final law had yet to be announced

Uber Act through the wars

Proving the tenacity and ability to operate in the legal

grayzone in China
January 2015 create independent company Uber
Technologies, Shanghai Wubo Information Technologies in
Shanghai with Uber (hongkong) as shareholders registered
capital US $150.000
Registered two independent company Wubu Information
Technology Co., Ltd., and Wubu Software Technology Co., Ltd.,
both with Liu Zhen (Ex Vice President Axel Martinez) as legal
representative
June 2015 Wubo capital increased to US $320 million
Uber formally announced in October 2015 with intention to
investment US $ 950 million in the ficture and investment 9.5
to build operation center in Wuhan
December 2015 gain undisclosed amount of investment from
Guangzou automobile and promoting Guangzou autos to its
drivers
January 2016 tourismate HNA Group launched strategic
partnership with Uber and invested undisclosed amount

Recommendation
1.Enrich the localization of maintain and
increasing consumer and driver
relationship
2.Keep putting investemnt related to the
fucture growth rate of the market
3.Hire professional person or create a
good government relation with a
company target to achieve legal state
or maintaining the grayzone with
approval by every part related to the
business