Uber China’s exit from the market has lessons for Tesla and Silicon Valley.
The company failed to overcome Didi Chuxing’s first-mover advantage, adapt to China’s mobile ecosystem, and navigate government regulation.
Learn from Uber China’s mistakes and avoid making the same ones in your own business.
Didi and Uber are two of the largest ride-hailing platforms in the world. However, they are facing increasing competition from other companies. In order to maintain their market share, these companies need to make it difficult for drivers to switch to other platforms. One way to do this is to create high driver switching costs.
Digital China has arrived. It has unicorns, huge market opportunities and a pervasive cultural impact. Everything is now at world-class scale. Unfortunately, the distorting impact of hot money and hype has also scaled up. And this appears to be increasing. But first…consider joining my executive education course Jeff’s Asia Tech Class for deeper insights into […]
In Part 1 (here), I laid out how Alibaba has evolved in China. It was for a retail marketplace, but you can see a similar pattern in many of China’s digital giants. The next phase in this evolution is “new retail”, and it is changing this pattern in a big way (coming in Part 3). […]
I recently visited the Didi-99 headquarters in Sao Paolo. In Part 1, talked about how driver needs and services are an area that appears to be particularly different in Brazil vs. China. Here are some other differences. Difference with China #2: How much to localize is an important question for ride-sharing globally. Uber, unfortunately, has […]
China’s digital giants are going international. Sort of. Asia is viewed as a strategic requirement by many (Alibaba, JD). So we see a lot of moves there (Alibaba acquired Lazada). Payments (Alipay) and hotel bookings (Ctrip) are following Chinese tourists abroad. So they are going pretty much everywhere. For example, Ant Financial recently tried to […]
I had a fascinating time in Mexico City investigating Didi Chuxing’s first launch of an international operation in ride-sharing. And they are going against one of Uber’s strongholds, a country where they have 7M riders and 250,000 drivers. Didi vs. Uber in Mexico is going to be a fascinating fight. This video is my take […]