No Wonder that Ride was so Cheap: Uber Losing USD 1 Billion a Year in China

Enjoy those Uber discounts – they're costing the company USD 1 billion per year, according to Uber co-founder and CEO Travis Kalanick.

Uber enjoys a loyal but overall smaller user base than rival Didi Dache, which Kalanick claims is also unprofitable.

Despite backing from search engine Baidu, Uber faces fierce local competition from Didi Dache and from regular taxis, Uber operates but does not outright own Uber China, the valuation of which is over a mere USD 7 billion, a drop in the bucket compared to Uber's own USD 62 billion valuation. 

Aside from competition, Uber faces tough municipal regulation in the Chinese cities where it operates, and has seen its offices raided in some cities, although not Beijing. In the meantime, enjoy the rides and the occasional puppy, cupcake, or charity drive.

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Photo: Mashable