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Uber entered China market aggresively. But can Uber's success in US be duplicated in China?

1. Luxury taxi service has huge opportunities in China
In most social events in China, the vehicle a person takes indentifies his/her social status. A guy who takes his date on a black luxury car with a driver has much more chances to win the girl's heart than a guy who goes to the date with a normal taxi. A business deal is also more likely to happen if the businessman arrives with a black luxury car with a driver. Moreover, many weddings in China hire luxury cars to make the weddings look elegant. The demand for luxury taxi service is high in China due to the culture. This provides huge opportunies to Uber.

2. Bad service of current taxis also provides opportunities to Uber
When I went back to China, sometimes I'd rather take the buses instead of taxis because of poor service of many taxi drivers. Some taxi drivers drive crazily and made you feel unsafe. Some taxi drivers smoke inside the car. The safebelts in taxis are usually dirty and can ruin your clothes. All these give Uber the opportunity to provide a better experience for passengers.

However, Uber needs to overcome the following challenges to succeed in China.

1. Uber may not have timing advantage over existing taxis
Different from US, people can wave to get a taxi within minutes in China. Why would they take the trouble to use Uber app and wait for their ride for half an hour? In peak hours, it may be difficult to get taxis. But it is also difficult for Uber to predict the arrival time of its vehicles because the traffic jam in big cities is very severe during rush hour.

2. Fierce competition from Chinese companies.
Kuaidi, a Chinese taxi app backed by Alibaba, announced it will start providing luxury taxi services. It already has large user base in China. Didi, another established taxi app backed by Tencent, is also a viable competition to Uber.

3. Uncertainty of regulation
In China, it is illegal to drive strange passengers for a fee using private vehicles without a taxi license. Those cars are called "black cars" in China and are distrusted by citizens. Police could give tickets and imposes fines to the illegal drivers. How Uber will operate within the regulation of China is a challenge, especially the regulation could change by the offcials at any time.

4. Criminal cases
What if criminal cases happen with some Uber vehicles one day? The safety of both the driver and the passenger could be at concern when some criminals try to take advantage of this system. What's more, deceivers could take advantage of Uber car too. Several cases may ruin Uber's reputation.

If Uber wants to succeed in China, it has to study and understand Chinese market thoroughly and taper its operation accordingly to the market.
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