Assignment:
Its a case study and i got to answer 3 questions in 1500 words.
Question- 1 What made the Chinese market attractive to Uber? Do you believe that Uber can succeed in the Chinese market?
Question- 2 What market forces did Uber China fail to identify, underestimate or consider in relation to its market entry?
Question- 3 What positioning and customer acquisition programs could Uber have pursued? Do you believe that these could succeed? Why?
Referencing style (Harvard style)
KE1032 October 31, 2017 ALICE M. TYBOUT Uber China The Marketplace In 2015 China had 750 million urban commuters, making it the largest commuter market in the world, roughly five times the size of the 150 million U.S. commuter market. However, Chinese car ownership was comparatively low, with only 69 car owners for every 1,000 people living in mainland China versus 786 car owners for every 1,000 people in the United States in 2014. China also had a short supply of taxis.
For example, Beijing had 60,000 taxis to cover a population of 11.5 million in 2015. Taxi drivers suffered poor pay, earning even less during rush hour when heavy congestion left them idling in traffic instead of completing fares. As a result, taxi drivers sometimes refused passengers traveling only short distances and elected to take their breaks during times of peak demand (e.g., rush hour). Many urban commuters had no choice but to rely on buses, trains, and bicycles for transportation despite dissatisfaction with the reliability, comfort, and personal space these modes offered. These factors made China an attractive market for new companies offering ride-sharing and online chauffeuring services.
However, ambiguity existed around the legal status of these upstart options. The Chinese government accused companies offering ride-sharing apps of providing illegal taxi services, created checkpoints to fine drivers without commercial taxi licenses, and even conducted raids of ride-share company offices, shutting them down in some cities. Nevertheless, the government also partnered with some local ride app companies to build an integrated online taxi-hailing service for the four major taxi companies in China. ©2017 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor Alice M. Tybout with assistance from Broderick Lee Turner. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements,.
Readings:
Uber China
By Alice M. Tybout