Uber’s China unit is close to registering 1 million trips on a daily basis, almost as much as the San Francisco-based ride hailing service registered globally just six months ago.
The company is planning to invest a further $1bn in the Chinese market and that sum could rise even further if Uber succeeds in raising funds specifically for its Chinese business.
If agreed upon, the funding raised for its China unit will be separate from the $1.5bn the company is rumoured to be raising at a valuation of $50bn, according to a Financial Times report.
Uber’s investment plans were disclosed in an email CEO Travis Kalanick sent investors. In it, the company highlights its growth in China despite the strength of local Didi Kuaidi.
Kalanick wants to grow Uber’s presence in China from the current 11 cities to 50 out of the 80 cities in the country that have over 5mn residents over the next one year.
Four out of the 10 largest cities for Uber in terms of rides taken are in China, making the country second only to the company’s home market of the US in terms of scale.
Unlike various other western technology companies, Uber is determined to make its presence felt in the Chinese market given the massive scope and fast pace of growth.