Want... Uber, the world's leading internet-based chauffeuring service provider, will establish a Chinese subsidiary, its first overseas outfit worldwide, to meet the particular needs of the Chinese market, says the company's CEO and founder Travis Kalanick, according to Caixin.com.
The Chinese subsidiary will facilitate further development of the company in China, which accounts for four of its list of top 10 cities worldwide in terms of business scale, including three of its top four list — namely Guangzhou, Hangzhou and Chengdu. Regulators in Guangzhou and Chengdu have called for the company to set up a local subsidiary for the sake of better regulation.
Kalanick said it was the first time for Uber to establish an overseas subsidiary due to the stark difference of China from other markets worldwide, adding that the company will solicit Chinese investors for the subsidiary.
Chinese investors are essential for the localization of the subsidiary and to assist in helping to interact with the government and regulators, he added.
Kalanick said the Chinese market is very receptive to new technologies, more so than even the US, adding that widespread use of social media means any new innovative product can spread quickly in China if it is good enough. This is very exciting for an entrepreneur, he said.
Kalanick also said he believes that Uber's China operations will expand at a much quicker pace than in the US. In the highly competitive Chinese market, a foreign firm must be very humble in order to survive and develop, he said.
Kalanick's words were carefully selected, as he is no doubt aware that foreign companies in China often find themselves targeted by regulator action and government-backed attacks disguised as consumer rights campaigns if they are deemed to be doing too well compared to domestic competitors. The joint venture model is also madatory in many industries to ensure Chinese companies share the fruits of external innovation and acquire know-how for themselves.
Poster Comment:
A much more intelligent approach to more efficient transportation than that of the Luddites of the West.