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Supplement
| HBS Case Collection
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November 2016
Uber in China: Driving in the Gray Zone (B)
by
William C. Kirby, Yuanzhuo Wang, Shuang L. Frost and Adam K. Frost
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Abstract
Starting in 2014, for two years Uber had fought an intense, costly battle for China’s ridesharing market with well-financed and well-connected domestic Chinese competitors. During this time, Uber also had to respond to an ever-shifting regulatory landscape that looked increasingly bleak in 2016. Then on August 1, 2016 Uber CEO Travis Kalanick shocked the global ridesharing industry by selling the company’s China operations to arch rival Didi Chuxing. Given the competition from domestic rivals and the uncertainties of government regulation, was the decision to exit China the right one for Uber? What does this latest reconfiguration of the market mean for China's burgeoning ridesharing industry? What lessons could other tech companies learn from Uber’s experiences in China?
Keywords: China;
Uber;
Didi Chuxing;
Start-up growth;
regulation;
transportation;
Ride-sharing;
Transportation;
Business Startups;
Growth and Development;
Cross-Cultural and Cross-Border Issues;
Transportation Industry;
Technology Industry;
China;
