Uber invests US$991 million in China and joins the Shanghai Free Trade Zone
Uber is setting up in the Shanghai Experimental Free Trade Zone by incorporating Shanghai Wubo Info Techn with registered capital of RMB2.1 billion.
Uber is setting up base in the Shanghai Experimental Free Trade Zone by incorporating a company called Shanghai Wubo Information Technology with registered capital of RMB2.1 billion (approx: US$33 million).
Uber Commute comes to China
The company also announced it would invest up to RMB6.3 billion (approx: US$991 million) to maintain its long-term and sustained development in China and is now preparing to apply to become a fully-licensed car-hire platform.
Since entering China in February 2014, Uber has set up its operations in 21 city markets including Shanghai, Beijing, Chengdu and Hangzhou. The company plans to extend its presence to 100 cities within the next 12 months, as well as introduce a range of innovative localized products.
Uber picked China as the location for the global debut of a brand-new service, Uber Commute, on September 22 this year. It was the first time Uber debuted a new service outside of the US.
The Shanghai Free Trade Zone was the first such zone established in September 2013 by the State Council. It attracted 25 companies and 11 financial institutions to set up base there on the day of its inauguration.
Uber China’s strategy director Zhen Liu said the Shanghai Free Trade Zone is at the forefront of China’s economic reform and will naturally attract companies dealing with cutting edge innovation and technology. Uber hopes to leverage its base in the zone to promote its localization strategy and achieve growth in sync with China’s economy and its mobile industry.
She also said Uber China is communicating with relevant authorities and actively preparing paperwork to apply for an operating license as a car-hire platform as soon as relevant new regulations are introduced.(Translation by David)