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The strategies used by Uber in China and Southeast Asia involved aggressive market penetration and heavy investment. However, these strategies led to significant financial losses and ultimately, Uber had to withdraw from these markets. The potential for these strategies to be implemented in other real-world scenarios is questionable. They might work in markets where there is less competition or where Uber can establish a strong early presence. However, in highly competitive markets or where local competitors have a strong foothold, these strategies could lead to similar outcomes as in China and Southeast Asia.
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By 2015, Uber burned between $40 million to $50 million a week in China to convince riders to use Uber over DiDi. The worst thing was, nearly 50% of the rides were fraudulent. In addition, Uber's competitor DiDi engaged in corporate espionage to sabotage Uber. After two years and billions in losses, investors forced Kalanick to abandon China. DiDi would take over Uber's business, and Uber received a 17.7% equity stake in the company. In Southeast Asia, a similar story played out as Uber burned $1 billion to fight Grab. After four years, Uber held just 25% of the market and was forced to sell its Southeast Asia business to Grab.
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Learn how Uber's growth was fuelled by obsessive product focus, broken rules, growth at all costs and minimal bureaucracy from the book that inspired...
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