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CHINA
SAN FRANCISCO
Reasons for Failure
Expanding to China
Entry Strategy
Overview of Uber Technologies
AAA
+
Global Aggregation
Local Adaptation
Similar Customer Needs Globally
Revenue from Local Markets
- Late 2013-early 2014 they expand to China
- Potential Market
- 80+ cities with 5 million people
-Urbanization and growth
What they did correctly
- Saw the potential an tried to get in early
- Tried to do a type of Joint venture with their biggest competitor: Didi Chuxing but rejected
- Got local investors, managers and partnerships
- San Francisco, March 2009
Travis Kalanick and Garret Camp
- Two Components (Passenger and Driver)
- Reasons for Expansion
- Easy to implement
- Didn't evaluate the CAGE
- Didn't evaluate the past history with tech companies in China (Amazon, Google, Facebook...)
- Aggressive measures, too ambitious ($1B loss per year)
- Problems in other countries should have warned them.
- China's Government banned unlicensed taxis (private cars) and Didi was able to capitalize
End Result
- Didi Chuxing acquired Uber in China
Strong Regulatory System
International Standardization
CRAIG
LUIS
VS
INDONESIA
Successful Expansion: Indonesia
Uber Pricing in Indonesia
REGULATIONS
Uberland needs Regulation
(World Economic Forum 2016)
Employment
Taxi
Companies
Legislative/Policy
Issues
Product Demand
Uber's Strategy
& Rivalry
Promotional Codes & Low Prices
Transferring Drivers
Larger & Younger Population
Faster Transportation
Innovation
Improve Quality
Investments
COMPETITIVE
ADVANTAGE
Supporting Industries
Basic & Advanced Factor Endowments
Climate
Skilled Labor
Work Together
Taxis/Motorcycles
Infrastructure
UBERLAND
Conclusion & Recommendations
- Evaluate local competitors - there are foreign ride sharing apps in almost all countries now
- Continue to adapt to local regulations
- Seek governmental approval to avoid large losses
- Continue to fix organizational structure and improve workplace environment