Uber China has shut down its mobile app as part of its ongoing merger with rival Didi. (Photo : Reuters)
Despite several police raids and competition from local car-hailing apps, Travis Kalanick, Uber’s Chief Executive Officer, is optimistic that the San Francisco-based transportation company will continue to expand operations in China.
It's not only for the company's profit. Kalanick believes that Uber Technologies, Inc.'s further expansion will spur the creation of more jobs in targeted cities. Another bonus would be less traffic jams.
In an interview with China Daily, Kalanick shared his vision of collaborating with Chinese government departments. According to him, city officials "are more in line with (the idea of) urban progress . . . and they are more used to large positive changes happening quickly."
Uber has recently come into scrutiny upon alleged regulatory violations.
Like other similar local-ride sharing service providers such as Didi Kuaidi, Uber is believed to have violated rules against private passenger vehicles making for-profit trips by offering privately owned vehicles for hire to passengers.
Aside from that, ride-sharing service providers have also been criticized by local taxi drivers, saying that companies like Uber grab potential customers while avoiding tax.
In spite of these allegations, Kalanick is confident that Uber can pull its act together and prove to the Chinese government that such ride-sharing businesses are good for cities. Other rivals like Didi Kuaidi are also seeking approval and official cooperation from local governments to legitimize their operations.
On the bright side, business in China remains good for the transportation company. According to Analysys International, Uber is no. 2 in China's chauffeur service sector by bookings. Kalanick is still set to expand to other cities, even third-tier and smaller ones.
"What China considers a small city, to the rest of the world it's a large city," said Kalanick.
