Uber plans to build independent business in China by acquiring a local server. (Photo : Reuters)
Geared to generate independent business in China, Uber has set up a server to provide enhanced service to its local customers and to start its long-term development in the country.
"China is the number one priority for Uber's global team," said Uber CEO Travis Kalanick in a leaked email.
However, penetrating the Chinese market is not an easy goal. This made Uber acquire a Chinese partner as one of its strategic investors, as stated in an email from the U.S.-based ride-hailing network company.
"This is the only time that Uber has done something like this because China is so different from other parts of the world," according to Kalanick.
Uber's three largest cities are all located in China. In fact, Kalanick said that Uber gets about one million orders daily just in China, and they are optimistic in investing about $1.1 billion in China's market this year.
The global ride-hailing platform entered the Chinese market in February last year. It started as a non-profit product called "People's Uber" to encourage users to try it. By May of this year, it had gained 17 percent of the Chinese taxi market.
Having Baidu as its local investor, Uber had received investments amounting to about $600 million from Baidu in 2014. But despite the local support, Uber has been challenged by China's taxi-hailing giant Didi Kuaidi. It was even initially accused of being illegal due to the country's restrictions on private cars being used in taxi services.
To set up a server in China, Uber must be lawfully recognized based on a Shanghai regulation on personalized cab services. Upon approval of the regulation, a tailored taxi-hailing platform may then apply for a business license, said Sun Jianping, director of the Shanghai Municipal Transport Commission.
Obtaining the platform is mandatory in China to set up a registered server, acquire enough capital, and get Internet service qualification.
