When I was in China this March, one of the best conveniecnes was to ride around town on Uber. The price was ridiculously cheap. Uber drivers told me how much bonus they would get as long as they were on the road.

I knew Uber was locked in a bloody battle with its Chinese rival Didi Chuxing. In order to gain market share, Uber subsidized its riders heavily, losing $1 billion a year. To me, that was a sign of trouble, because competing on price is never the way for foreign firms to win in China.

When Apple invested $1 billion in Didi this May, I knew Uber’s days in China were numbered. Didi had more than 80 percent market share in China’s ride-hailing business. Apple clearly saw that Uber had no chance and bet on the top dog.

Even without Apple’s blow, Uber was in a disadvantageous position. It was a late comer Continue reading 3 Lessons from Uber’s Defeat in China