Policy on unlicensed by the risk of losing money Uber low-priced brand hard dilemma in China

the author: Zhang Xuwang

unlike Google, yahoo, focus on technology dimension of a taxi Uber might be expected to step (optimal) into China, but to enter the Chinese market for 10 months, Uber layout only four cities. After the early uphold the concept of high-end car, Uber recently started offering matches the taxi price low price strategy. But it seems to many in the industry, policy, black car, localization, and valuations are hindered the tens of billions of dollars into a price war swamp of multinational company’s prospects in China.

on June 19, Uber in official blog announced formally in Beijing, Shanghai, shenzhen, guangzhou four cities UberX launched low-priced car service, to provide users with Volkswagen passat, buick model and other models, the obvious difference in positioning of the previous BMW and Mercedes limousines.

even more remarkable is the price, in Beijing UberX fare is only 15 yuan, the unit price of 2.3 yuan per kilometer, 0.4 yuan per minute. Shanghai market is to start at 15 yuan, 2.86 yuan per kilometer, 0.37 yuan per minute. Both services at the lowest consumption is 20 yuan. Comparing the taxi price, Beijing taxi fare is 14 yuan, 2.3 yuan per kilometer. Shanghai taxi fare is 14 yuan, 2.4 yuan per kilometer.

at least on price, UberX price has been close to the price of a taxi. Is worth pondering, almost at the same time, Uber in Paris, London and other European and American markets by 30000 taxis and luxury commercial vehicle drivers protest, reason is “disrupt normal” black car rental business, the deeper reason is the low price strategy to formal taxi driver’s income.

Uber is what? As the forces of the emerging Internet provides business car rental business, the company has received $1.2 billion in financing and a $18 billion valuation. In European and American markets, Uber through signing many private cars predatory market. In China, Uber emphasizes only work with regular car rental companies, this is partly affected by stricter regulation of local policy.

but the limitations of this business development limits the Uber in China, with a number of their Chinese counterparts are easy to transport and bumblebee, Uber high end location at first failed to help it grab more users, at this point, the more traditional model of China auto rental, ehi also did not have too great pressure.

however, Uber still let people below glasses at a low price strategy. Have declined to be named practitioners, points out that UberX price close to the taxi, but costs are higher than a taxi. Commercial vehicles, the cost of running a car industry (including the vehicles, the driver wages, fuel, but does not include the company’s profits) roughly as follows: passat: 700-900 yuan/day; Buick model: 900-1200 yuan/day.

costs so high, and to calculate earnings, the most hard-working Beijing taxi single class day also 7800 yuan income, it open for 24 hours continuous double class has an income of around 1000 yuan. “The price close to the taxi, but as a business car rental, Uber impossible as high operating efficiency.” The practitioners believe that: “either Uber in at a loss to hit the market, or it’s a black car (personal vehicles) began to flood into the platform.”

in fact, whatever the reason, Uber low-cost services could face huge policy risk, “the black car, strictly control field is regulators. And close to the taxi price also may disrupt the taxi market, the impact of its price system “. Some analysts said the concern, even if is the product of market competition, but also easy to stand convicted of vicious price competition.

in addition, the taxi business such as Uber widely used “generation of driving car rental business, namely provide car rental companies, Uber or leasing company to provide the driver. But in China, the generation of driving car rental business has been wandering in the law of the fuzzy zone, in principle, to provide business car rental companies can provide vehicles and can’t provide the driver. But with the outbreak of the many new Internet pattern, a grey zone was repeatedly collision.

Uber for less than a year in China, more details of the localization work also need to adjust. For example, the pay treasure to pay withholding first opened alipay overseas service, and a Uber Chinese website at present still can’t use Chinese to search the city.