Merge is such a cute word. "Uber lost China and had to sell to Didi" is more like it
The Chinese are cute. They win in their home country but nowhere else.
Look around you. A lot of manufactured products you own will most likely be made in China.
Uber to Sell China Business to Rival Didi After Losing Billions
121–130 of 194 posts
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#122Earlier quoted context omitted.
Lived in Beijing for 2 decades. I think in Beijing and Shanghai, a private car is almost always slower than their subway systems. Beijing subway network has 18 lines, 334 stations and 554 km (344 mi) of track in operation and is the second longest subway system in the world after the Shanghai Metro (588 kilometres). Beijing subway also has extensive expansion plans call for 1,050 km (650 mi) of track by 2020. https:/…
I've lived in Beijing for the last 9 years. I beat the subway in a taxi on my commute from work to home except during peak rush hour. I work and live on 4th ring, it is a straight shot on line 10 without a transfer (ideal subway shot, routes are identical). Couple that with the subway never having seats, being ultra crowded (say hello to your neighbor's BO), and often having long lines to even get in the station via…
"lines to even get in the station via BS security"
Yup, at Wudaokou this adds >5 minutes at rush hour.
"Now Shanghai is completely different"
I used to think that, until I started a lot of time in Shanghai. Surprisingly, getting from Hongqiao airport to somewhere in Pudong can be faster by car, even the whole subway journey is on line 2. The difference is not as stark as in Beijing, but it still exists.
"I've shifted my schedule"
Yup. It makes so much sense.
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#123I can't tell if this is a good deal for Uber investors or not. As I understand it, Uber will own a 20% share in the combined company. The combined company is valued at $35 billion, so Uber's share of the value will be $7 billion (actually less, since they also need to share it with Baidu which invested directly into Uber China too). $7 billion doesn't sound too bad as an exit. However, if Uber's China business is wor…
I think this is exactly right. It's a decent face saving move for Uber to have some sort of outcome in an otherwise very very difficult market where they were losing. Seems like the investors in Uber China could have done better to just put the money directly into Didi though. I guess the upside was it got them into the parent company though, which otherwise they may not have had access to.
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#124Jean Liu, the president of Didi, is the daughter of Chinese businessman and Lenovo founder Liu Chuanzhi, and the granddaughter of Liu Gushu, a senior executive banker at the Bank of China. Travis Kalanick is not.
Uber is renowned for using political connections and board seats to influence regulation. How different is it?
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#125For people living in Beijing, this is really a bad news. Didi and Uber China have been in fierce competition for quite a long time, both of them gave consumers HUGE discount. For example, Uber is showing me a promotion which I can go as far as 5 KM around at the cost of just 5 RMB (0.75$). After merging, I'm afraid we won't see such a low price anymore.
Demand (and revenue) will suffer accordingly.
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#126From bbc.com:
"The deal with Didi Chuxing comes just days after China agreed to provide a legal framework for taxi-ordering apps. Both Uber and Didi have welcomed the decision, having previously operated in a legal grey area in the country. While the apps are widely popular, they have undermined business for normal taxis and have been met with protests by cab drivers. The new rules will take effect on 1 November and will, among other things, forbid such platforms to operate below cost."
New regulation prohibits ride subsidizing. Meaning no way for Uber to increase its market share by subsidizing rides after November 1st.
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#127Jean Liu, the president of Didi, is the daughter of Chinese businessman and Lenovo founder Liu Chuanzhi, and the granddaughter of Liu Gushu, a senior executive banker at the Bank of China. Travis Kalanick is not.
Uber is renowned for using political connections and board seats to influence regulation. How different is it?
The most sneaky US lobbyst is a naive child comparing to any Chinese small village chief.
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#128From bbc.com: "The deal with Didi Chuxing comes just days after China agreed to provide a legal framework for taxi-ordering apps. Both Uber and Didi have welcomed the decision, having previously operated in a legal grey area in the country. While the apps are widely popular, they have undermined business for normal taxis and have been met with protests by cab drivers. The new rules will take effect on 1 November and…
Wait for suddenly and unexpectedly these regulations will be pulled off after the deal.
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#129Earlier quoted context omitted.
I've lived in Beijing for the last 9 years. I beat the subway in a taxi on my commute from work to home except during peak rush hour. I work and live on 4th ring, it is a straight shot on line 10 without a transfer (ideal subway shot, routes are identical). Couple that with the subway never having seats, being ultra crowded (say hello to your neighbor's BO), and often having long lines to even get in the station via…
"lines to even get in the station via BS security" Yup, at Wudaokou this adds >5 minutes at rush hour. "Now Shanghai is completely different" I used to think that, until I started a lot of time in Shanghai. Surprisingly, getting from Hongqiao airport to somewhere in Pudong can be faster by car, even the whole subway journey is on line 2. The difference is not as stark as in Beijing, but it still exists. "I've shifted…
Wudaokou is even an extra transfer on line 13. If you can afford it, taxi will save so much time and frustration. Beijing subway is just not well designed or operated compared to taxi and ride sharing services once you reach a certain income level around $2K/month.
Re: Uber to Sell China Business to Rival Didi After Losing Billions
#130Merge is such a cute word. "Uber lost China and had to sell to Didi" is more like it
The Chinese are cute. They win in their home country but nowhere else.
Maybe one day they'll work out this whole global business thing. Btw did you read about Margaret Thatcher resigning? Pretty crazy huh.