Is Uber Giving Up on Southeast Asia?
Uber had goals to expand all over the world- but is this still the case? They announced a change in their expansion strategy to Southeast Asia and other international markets. Why a sudden change in their strategy? Is Uber really ready to pull out of the Asian market or are they being forced by their new investors due to a conflict of interest?
Uber’s change of course on global domination is attributed to Uber’s investor SoftBank who also has a vested interest in Southeast Asia’s premier ride sharing App, DiDi.
According to Uber’s new CEO, Khosrowshahi, who took over last August due to a series of scandals, they have decided it’s best to focus on defending their core market, even If it means giving up on their dreams of world domination. Khosrowshahi claims local know-how and the ability to adjust to international regulations play a huge factor in international expansion and it’s in Ubers best interest to focus on their “bread and butter” market in the United States.
SoftBank invested $9.3 Billion into Uber but encouraged the company to focus on their “core market”. Many believe this strategy has a lot to do with the fact that SoftBank is also an investor in China’s ride sharing app DiDi. Since inception, Didi has dominated the ride sharing marketing in Asia.
Tech guru’s question SoftBank’s intent in investing in direct competitors. Analyst’s believe SoftBank’s investments in multiple ride sharing apps makes sense from a global perspective. Merger’s will begin to take place in the ride sharing industry and Softbank will have direct control on how the industry plays out in the global marketplace.