Uber chief executive Travis Kalanick launched the latest salvo in his company’s battle with for supremacy in China yesterday, insisting that the ride-hailing company could outlast local rival Didi Kuaidi because of its huge balance sheets and more efficient spending practices.
Mr Kalanick accused Didi of being overburdened with lossmaking subsidies to the tune of $70m-$80m per week, which would represent about $4bn over the course of a year. “It’s not how much you spend, it’s how efficiently you spend,” he said, arguing that Uber spent less on driver subsidies per ride than Didi because of a more efficient structure.
Didi rejected Mr Kalanick’s figures, saying that Uber “is being wildly creative about our numbers”, insisting that it was more efficient than its US competitor because it had more riders and drivers.