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Amid Recent Raids, Fierce Market Competition, Uber Could Still Win Larger Share of Chinese Market

| May 23, 2015 04:59 AM EDT

Uber China has shut down its mobile app as part of its ongoing merger with rival Didi.

Although Uber, the ride-hailing application from the United States, has been facing fierce competition in China’s market and issues over illegal operations leading to recent office raids, commentaries have surfaced that the firm is just waking up in the country.

While Kuadi Didi--the merger company of the dominating cab-hailing firms in China, Didi Dache and Kuadi Dache--is touted as a serious challenger to Uber, the U.S. firm still has an opportune time to win a larger share of the big market.

Narrowing down to a number of advantages, Uber also has an able financial resource that could help propel its presence in the country.

Some of Uber's lead over the competing entity includes its ridesharing features, high-service standards, and the support it could domestically and globally get from Internet giant Baidu.

The People's Uber, specifically, received a nod from customers for providing a peer-to-peer model that is considered a breakthrough in the domestic market. Uber has also clarified that it does not extract a commission from the rides from this tier.

Showing this tier's success is the launching of its rival Kuadi Didi's own line of such service seven months after Uber brought the model in Beijing.

The firm is also recognized for having professional licensed chauffeurs, which in turn gives insurance of a smooth ride to its customers.

Meanwhile, Internet firm Baidu also looks set to be a major partner of the U.S. company in China, and with great possibility, internationally as well.

This partnership is seen as a crucial key in providing some buffer between Uber and the country's regulators, who have been turning high-profile foreign business into punching bags.

Apart from legal cushioning, Baidu could assist Uber with its operations and technology ventures, speaking of both short and long-term periods.

While short-term endeavors include distribution (Baidu has funded ride-sharing startups and has partnered with other up and coming ride-hailing firms), the long-term undertakings hint for an all the more exciting future, which covers Uber's foray into logistics, e-commerce and self-driving mobiles.

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