Uber’s China Rival Says It Has to ‘Burn Cash’ to Build Scale
A taxi driver is using Didi Dacha App while driving in Beijing.
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Didi Kuaidi, the Chinese car-booking competitor to Uber Technologies Inc., said it had to spend on driver incentives in order to build enough economies of scale to tip the business into a “virtuous circle.”
“You need a sufficient operational base to have enough users -- if you only had 10 or 20 cars, you will never be able to book one,” Didi Kuaidi President Jean Liu said at a forum in Hangzhou, China, on Monday, according to a transcript of the speech obtained by Bloomberg.