Uber’s New Initiative to Focus on the Needs of Frequent Travelers
Uber Technologies announced a new business initiative that focuses in providing ride hailing services to the increasing tourists in China, a move that is grabbing more market share for its local rival Didi Chixing. The US based tech giant will leverage its global presence along with its partners around the world an offer Chinese tourists seamless traveling experience.
The number of Uber trips that are ordered by Chinese outbound travelers has increased eight times for the first quarter compared to the same period last year. and according to Liu Zhen Uber China’s senior vice president, the tourism industry serves as the best gateway in tapping into the ride hailing demand in China as it contributes to 10 percent of the Gross Domestic Product of China. Uber also announced the first batch f partners for the initiative Uber+Travel which includes several travel agencies and providers such as HNA Group the parent company of Hainan Airlines and the online travel agency Qunar Cayman Islands Ltd.
Uber entered the Chinese market about a year and a half ago and Chinese users have completed 1 million trips using the app in countries outside of China for the first five months of this year. non Chinese users had completed 3 million trips in 24 cities when traveling within China from January until May. An analyst said that the effective strategy of Uber grab the attention of users and won them over just by tapping into the needs of the tourists.
Meanwhile Didi Chuxing formed an alliance with overseas ride hailing apps Lyft Inc, GrabTaxi and Ola and are providing a ride service to cross border travelers, but Uber have advantages in global traveling. Uber is planning to expand their services to 10 cities in China and recently launched the service in 60 cities so far,