Uber Lands In ShangHai And Adds Alipay Payment
Uber, the ridesharing startup app, has been expanding rapidly lately. Uber tested their market in Shanghai, China about a year ago and now they are officially accepting Alipay in China. Alipay is a payment processing system similar to Paypal. Most of the chinese consumers and businesses all use Alipay. Uber has been approaching China cautiously because the startup market in China is very different from the ones in the Silicon Valley.
Uber In China
China has implemented a few laws since Uber has entered China. China has been getting quite serious with their laws lately. Beijing requires all taxi apps to be integrated into its official one and forbids them from charging extra fees. Shenzhen asked all the cab drivers to remove taxi apps from their phones in the past May. Shanghai does not allow auction models to occur for taxi drivers. The reason why China is creating these new laws is because China wants to keep it’s system organized. This will prevent illegal workers and will also allow existing taxi drivers to keep their jobs.
The startup announced that they will now be accepting Alipay in their business. A lot of people did not use the company’s service because before all of this, they were only accepting credit cards in China. With the integration of Alipay, this means that the startup will now be accepting RMB (renmibi). Another problem that might slow down the startup’s expansion to China is that Alipay is currently only available in iOS, and most of the people in China use Android systems now.
Uber has a lot of competition in China. China has way more taxi services than United States. China also has a lot of individual drivers who approaches random people to see if they need a ride. In some cities motorcycle taxi is very common. It might be difficult for Uber to maintain it’s original business model of requiring individuals to rideshare using their own vehicles.
Uber does however have a big shot at top corporate contracts. Foreign companies that do business in China need drivers to drive them to other corporate locations or from and to the airport. This might be a big and friendly shot for the startup. Uber cooperates with licensed Chinese car rental services and shares revenues with them.
Check out Uber’s site here: