In its latest round of fundraising, Uber China has raised over $1 Billion from investors.
This brings the total value of Uber China to well over $8 Billion. This confirms positive things are in store for the long-term prospects of Uber in China, despite the current economic slowdown creating turmoil in the markets.
Uber did confirm, however, that they have not yet turned a profit in any Chinese city due to intense competition. Didi Kuaidi, China’s main alternative to Uber, is worth an estimated $6 billion and currently dominates the market.
The Chinese internet linked transportation market is set to become the world’s biggest as more and more rural Chinese pour into cities. Didi Kuaidi alone has over 100 million users throughout various Chinese cities, with numbers continuing to grow.
With smartphone sales in China growing at a breakneck pace, seeing android devices hold a 78.6% market share, the future looks bright for apps like Uber, despite current economic problems.
Travis Kalanick, Uber’s chief executive, said that he thought the fundraiser had done very well given macroeconomic conditions.
Could China make inroads into China this year? We’ll have to wait and see. Clearly, investors think it will. What do you think?