Industryweek 9977 Uber Cars 1

Uber Partners with Chinese Auto Maker

Dec. 23, 2015
Uber and Guangzhou Automobile Group will work together in areas including investment, sales, marketing, and promoting new energy vehicles such as hybrid or electric cars.

SAN FRANCISCO -- Uber on December 22  announced a partnership with a major Chinese auto maker as the controversial ride-sharing service revved its efforts in the country.

Uber and Guangzhou Automobile Group will work together in areas including investment, sales, marketing, and promoting new energy vehicles such as hybrid or electric cars, the San Francisco-based company said.

Terms of the strategic partnership included Uber China promoting GAC automobiles and the group's used-car trading platform to ride-sharing service drivers and partners.

"I believe we can unlock new opportunities to evolve how China moves, and open up even more transportation possibilities for riders across China," Uber China head of strategy Zhen Liu said of the alliance.

Uber launched in China in February of last year and is active in 21 cities in that country, with plans to be in 100 cities within a year.

The firm established a Chinese business entity, Uber China, in a Shanghai Free Trade Zone late this year.

The head of Uber in October said the ride-sharing firm has spent a billion dollars to gain traction in China.

Uber's share of the Chinese market had climbed from one percent at the start of the year to about 30%, but it remains a distant second to the Chinese ride-hailing app Didi Kuaidi, Uber co-founder and chief executive Travis Kalanick told a Wall Street Journal technology conference in California.

While the mobile-based service was hitting profitability in some cities in North America and Europe, it remains a money-losing "underdog" in China, Kalanick said.

But he said Uber would continue to plough resources into the fast-growing Chinese ride-sharing market.

"We are investing a fair amount of money there," Kalanick said at the conference. "We are definitely spending a billion dollars a year on that effort but we feel great about it. For an entrepreneur, this is where the action is."

Copyright Agence France-Presse, 2015

Popular Sponsored Recommendations

What Does Agility Look Like for Today's Auto Industry?

Dec. 4, 2023
Without modern technologies, enterprises aren't able to fully analyze the risks and respond to ongoing supply chain issues and semiconductor shortages.

Electric Vehicles Spark New Opportunities in the Automotive Industry

Dec. 4, 2023
Automakers have increased plans to produce Electric Vehicles to meet customer demand for low emissions. With this radical shift, new opportunities and challenges for the auto ...

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!