Uber’s features have been banned on the Chinese application, WeChat, which is consequently injuring its market share in the country.
The American cab service provider, Uber, is facing problems in the People’s Republic of China. Uber news exclaimed that it could no longer be accessed through the second largest economy’s most famous messaging application, WeChat. The Californian enterprise is targeted after its Alibaba-supported rival, Kuaidi Dache, collaborated with the application’s owner, Tencent.
Uber stated that features were gradually removed from its accounts in Chinese cities, including its customer support profile. Tencent previously related the issues to policy breaches on Uber’s part, as well as some technological bugs.
Tencent also took action against Kuaidi, as it prevented the cab service from offering coupons through the Asian application. Uber was itself alleged of taking suspicious actions against its rivals in the world’s largest economy, where a competing firm, Lyft, stated last year that Uber ordered then suspended more than 5,000 rides to sabotage Lyft drivers and redirected passengers towards Uber.
The ban on WeChat has the potential to adversely affect the organization’s operations in the region. The application is used as a marketing network by brands interested in targeting the growing customer market. Uber news today affirmed that 549,000,000 people use the Chinese app internationally with a majority residing in China, who use it as a communication tool and receive coupons and updates from local and foreign companies.
Uber technologies disclosed that the platform has a payment service that allows dealers to process electronic transactions with WeChat users. Uber’s employee, named Emil Michael, believes that the ban would not be imposed in the long term. The company has recently stated that it is concentrating on the possibility of a public listing in China to finance its expansion in the country. As per reports, the Western cab service organization is interested in securing funds worth $1,000,000,000 to aid its operations in the Southeast Asian country’s market, which is currently captured by Didi Kuaidi.
It is probable that transporter’s competitors would cherish the suspension of its service across the world. Industry professionals believe that the restriction would play an important role in cutting down the market share and sales revenue of the organization.
Uber should take initiative to deploy other high-tech marketing tools to retain its position in the market. Its ban on WeChat is not appreciated by its management, while the officials complained about the company politics. Only time will determine the actual results of this ‘corporate hostility’, where strategic retaliation is expected from Uber. Its market share will face consequences indeed.