Company offers three levels of service to attract Chinese customers in tough market

Updated: 2015-06-13 05:16

By Fan Feifei(China Daily USA)

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Uber currently operates in about 300 cities in 57 countries. It entered the Chinese market in February 2014, and now operates in nine cities on the Chinese mainland: Beijing, Shanghai, Guangzhou, Chengdu, Chongqing, Hangzhou, Tianjin, Shenzhen and Wuhan.

In China, Uber offers multiple choices for customers. People’s Uber, which was launched last October, is a nonprofit ride-sharing service that pairs car owners with passengers. The only money exchanged is what the passenger pays the driver to cover the costs of the ride.

In addition to People’s Uber, Uber offers other service levels. UberBlack gets a rider a premium car, such as the Audi A6, and UberX is for medium-level vehicles such as a Volkswagen Passat. These last two are provided by Uber, which has signed a cooperation contract with leasing companies.

Without discounts, hiring an Uber car would cost considerably more than a regular taxi, but it is more comfortable. Its prices fluctuate with demand, especially during the rush hour in the central urban area.

To become an Uber driver in China is not difficult. The applicants need to own a local car license and a car that costs more than 100,000 yuan ($16,119) and that has been used less than five years. He or she needs to watch an online instructional video and pass an exam.

Uber has grown fast in China, but it has stiff competition. Its two Chinese rivals, Kuaidi Dache and Didi Dache, merged into one company that has about a 90 percent share of the market.

— fan feifei

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