How to Save Uber in China (part 1)

The situation for Uber in China is now dire. They are still quite small (+10 cities). Kuaidi and Didi, their two gigantic Chinese competitors, are merging (+350 cities) The government is now raiding / “visiting” Uber’s offices on almost a weekly basis. Uber is now in the situation you never want to be in in […]

Uber’s New Competitor in China? The Government.

The Guangzhou government is officially launching its own taxi-hailing / ride-sharing app. The service is called Ruyue and it will be a direct competitor to Uber. That is really, really bad for Uber. The local government will both make the rules and directly compete.The Guangzhou government is going to be both policeman and player. They […]

Uber China’s 5 Big Lessons for Netflix

Last month, Netflix’s stock price soared on rumors of meetings in China. People got pretty excited about the potential market for “Netflix China”. Meanwhile, “Uber China” is continuing to take body blows. Their gigantic Chinese competitors are merging. And the government is raiding their offices. I detailed this in How to Save Uber in China […]

Senior Housing and 3 Other China Businesses to Avoid

If something hasn’t happened yet in China, there are probably good reasons why. Here are four China businesses that are frequently in the news as big opportunities. But I think they all fall into the category of “well, if it’s so great then why hasn’t it happened yet?”. Thus, I think they should be viewed […]

Uber’s 4 Options for China

I have argued that Uber’s best option for China at this point is to partner with local governments or State-owned taxi companies. This is detailed in How to Save Uber in China (part 1) and Uber China’s 5 Big Lessons for Netflix. But looking back to late 2013 when Uber entered, I think they really […]

1 Chart Shows How Chinese Consumers Are Still Saving Like Crazy

Below is a chart based on Credit Suisse data (re-created and adapted). It compares Chinese consumer spending to other emerging market consumer spending (India, Brazil, etc.). The big difference that jumps out is the savings rate in China. The high rate of Chinese savings is understandable. It’s cultural. They are precautionary savings. No social safety […]

How to Save Uber in China (Part 2)

A final post on Uber China. In Part 1, I argued that Uber China was now on the wrong side of both the government and entrenched local competitors. Their best option is to partner with local governments or State-owned taxi companies – thereby removing the government problem and trumping the powerful economics of their competitors. […]

The 1 Thing Uber, Expedia and Netflix Need in China

Last week, it was reported that Uber is raising $1 billion for its China business. That is impressive and a good strategy. But, just yesterday, their gigantic Chinese competitor Didi-Kuaidi responded by announcing they are raising $1.5 billion. That little back-and-forth is a great example of how competition in the Chinese internet often works. People […]

Get Ready for the Uber – KuaidiDidi Price War

Last week, Uber announced they are raising a whopping $1B for their China business. And this week, Kuaidi-Didi, Uber’s gigantic Chinese competitor, announced they are raising $1.5B, likely in response. All of this is awesome news for those of us who live in China. Because neither of these companies needs that kind of money for […]

Chinese Beer Profits Are Still Really Small

China is the world’s biggest beer market. This is a frequently cited fact. So is the fact that Snow (drunk mostly in China) is now the world’s most popular beer by volume. In fact, three of the world’s top 10 beers are now Chinese (Snow, Tsingtao, and Yanjing). All very impressive. But it is worth […]