U.jpg (Photo : Reuters )
Uber CEO Travis Kalanick may be leading a more cautious international strategy for his $40-billion startup, which, on top of ongoing issues with authorities, has recently been banned in India and Spain.
The chief executive told the media that no regulatory issues have arisen since Uber's entrance into the Chinese market, and the finalization of a major deal on Wednesday with the country's largest search engine is a further sign of establishment, as Baidu joins two other prominent Chinese dot-com companies in their support of Uber.
No one from either party revealed to the media how much Wednesday's signing in Beijing is worth, but given that Goldman Sachs and Google Inc. are part of Uber's investment picture, it is fair to assume that it is significant.
Baidu chairman and CEO Robin Lee has made a commitment to connect the search engine giant's map and mobile-search features with Uber's app, meaning that just under a quarter-billion, Baidu Map users will become part of Uber's system.
As of Wednesday, the San Francisco company had managed to set up operations in nine Chinese cities--including the capital and Shanghai--and this total is expected to increase to 14 in the near future.
Uber makes itself distinct from the Chinese taxi apps that have been active for a fair period of time--Hangzhou Kuaidi Technology and Didi Taxi have captured 90 percent of the market--by appealing to high-end customers with luxury vehicles and a segment of English-speaking drivers.
Kalanick's focus upon the Chinese market should surprise no one. Described as a "Holy Grail" by an automotive and transport analyst on Shanghai Daily, the number of Chinese taxi app users is expected to rise to a massive 45 million in 2015.
