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Uber

In: Business and Management

Submitted By lllyusi
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How Uber developed in China
Demand
Most of the consumer group is young people, which includes graduate student and people would dream of driving themselves everyday, but still don’t have ability to buy their own car yet.
This group of people always enjoys new technology things and they spread out the messages to peers soon. So more and more people get to know about Uber and want to try them.

Supply
In order to survive in the Chinese market, Uber’s first action was lower the price to ingratiate the citizens who are from different income levels to enjoy this car service. They offer things, for example: coupons as the gift to attract more consumers. After a long while, the consumer is already adapted to Uber’s service, even Uber has adjust the price higher now and they do not provide discount or coupons anymore, the customers are still willing to pay and enjoy the service that Uber has provided.
And, in technology aspects, Uber did a great job than other companies, like the GPS is more accurate than other car-hailing service application.

Localization
Another important reason that Uber have a good development in China because they are having a partnership with Baidu which provide the company a local service.
Firstly, Baidu offer a local payment tool (baidu wallet) due to Chinese people don't like to use credit card, visa. And this kind of payment is quite convenient for customers. After that Baidu also provide baidu map to let Uber make a better

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