Table of ContentsIntroductionAnalysisPolitical factorsEconomic factorsSocial factorsTechnological factorsLegal factorsEnvironmental factorsConclusionWorks CitedIntroductionUber entered the Chinese market in 2014 and from the beginning tried to stand out in the world's most populous country by investing around 1 billion euros. dollars per year. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay China, being the most populous country in the world, was the ideal market for Uber, which planned to expand its ride-sharing service across the world. world. When Uber entered China, it faced its biggest competitor, local ride-hailing company DiDi. DiDi had the largest market share and was growing rapidly. In order to compete with such a large competitor, Uber had to do something different and had to invest big in the Chinese market. In 2015, the company spent $1.5 billion in China, accounting for 60% of Uber's global spending. Uber was supposed to be the perfect example of the ability of Western companies to gain a foothold in the Chinese market. competition to DiDi, which was on the verge of making the ride-sharing market a monopoly. As Uber's largest competitor in the Chinese market, Didi also subsidized up to $4 billion per year to weaken Uber's ability to gain market share and ultimately controlled 80% of the market in 2016. Chinese carpooling services. After intense competition for the Chinese market, Uber merged its Chinese operations with Didi Chuxing on August 1, 2016, and Uber gained board seats from both companies. Knowing the history of Uber in China, several questions come to mind: Why did Uber fail in China? Why is it difficult for Western companies to establish themselves in the most populous country in the world? world?What are the factors that have affected Uber's presence in China?Through this report, we will try to find the answers to these questions using PESTLE analysis.AnalysisPolitical factorsUber needs to change its business model and operate like existing taxi companies to have a chance of legalization, Hong Kong's transport minister said on Wednesday, effectively erasing the future of the car-hailing business while unveiling a roadmap for public transport in the city. It has always been difficult for Western companies to succeed in China. Many believe it is because of government policies that foreign companies are complaining about the country's increasingly hostile business environment, as concerns grow over protectionism, forced technology transfers and tougher policies. . Some experts perceive a subtle change in the world's second-largest economy: it is no longer passionate about seeking foreign capital. Although the report made no specific mention of Uber, the government's stance against such car-hailing services was clearly evident when police last month arrested 22 drivers on suspicion of picking up passengers without car rental license or civil liability insurance. Political leaders didn't really support Uber's activities because they wanted to protect their national ride-sharing services from the tough competition Uber was giving them. Stricter regulations were imposed on ride-hailing companies and Uber was forced to change its operations. model even after numerous discussions between the Uber board and the Chinese government.FactorsEconomics When Uber entered China, it had major competitors in the Chinese market, including DiDi, which had almost 80% market share in the taxi booking industry. Uber had to invest a lot of money to compete with DiDi, but it didn't help much since Uber's CEO reported that Uber was losing $1 billion every year to compete with DiDi. Despite all the investments Uber made, it failed to gain enough market share while DiDi was growing rapidly. Uber was investing more and more in the company, but Didi still had the largest market share. Uber benefited from the huge supply of labor available in China, the profit margin increased as the unemployment rate decreased in China during the period. Thanks to policies such as the one-child policy, female employment has also increased in China, benefiting Uber, which has been able to employ a more diverse workforce. Social factorsThe state and society are emphasized before the individual. There is a long history of subjugation of personal ambition to that of the community and the state through Confucianism. The degree of control and authoritarian structures are more accepted in China than in most Western cultures which emphasize individualism. Second, China's literacy rate exceeds 90%. China emphasizes education and the majority of the nation is literate, which provides businesses with educated and skilled employees. Finally, the country has 420 million Internet users. With access to the Internet, Chinese people often shop online and use online taxi booking sites like Uber. Technological factors Since the 1990s, China has been developing its energy base, with new hydroelectric and nuclear power plants. China is also embarking on a massive program to open coal-fired power plants, based on its own substantial coal reserves and imports from Australia and Indonesia. However, severe urban air pollution as well as a commitment to limit carbon emissions after 2030 are leading to a less rigorous expansion of this electricity source. In China, the penetration rate of credit cards was only 1 percent, suggesting that the most widely used payment method had a low penetration rate. China's acceptance and payment system to support online credit card transactions is also facing low usage. And the lack of a secure online credit card payment system is one of the main reasons for this low usage and penetration. China has set itself the goal of becoming a world leader in science and technology. To achieve this, the country launched the “Entrepreneurship and Mass Innovation” program in 2015. This program aims to spread entrepreneurship throughout China. It also aims to help the country transition from a labor-intensive economy to one driven by innovation. All these factors worked in favor of Uber because of the existing technological knowledge that the Chinese mass has, the majority of the Chinese population owns a smartphone and the majority of them also know how to use apps like Uber and DiDi which worked in Uber's favor. Accepting the difference in how Chinese people pay, Uber added features allowing Uber riders to pay using apps like Alipay instead of using credit cards, also recognizing the fact that the majority of Chinese do don't use Google Maps, Uber collaborated with thelocal businesses to find an alternative to Google Maps on its application. Legal Factors There are a number of laws that regulate business and employment practices in China. For example, labor standards, employee compensation and benefits, labor disputes and other relevant matters are governed by the PRC Labor Law of 1995, the PRC Labor Contract Law of 2007 and various administrative regulations. In order to encourage foreign companies to invest in China, the Chinese government has gradually established a relatively comprehensive legal system. In 1979, the Law of the People's Republic of China on Joint Ventures with Chinese and Foreign Capital was issued. Twenty years later, the Chinese government promulgated and issued a series of laws and statutes on the establishment, operation, termination and liquidation of foreign-invested enterprises. China is known as one of the most attractive incentive programs in Asia. Tax incentives and other facilities for the manufacturing sector are planned in promoting investments. Despite all the previously introduced laws that favor foreign companies, experts believe that China is no longer seeking foreign investment, as evidenced by the country's passage of new regulations that limit how ride-hailing companies operate. Environmental Factors Undoubtedly, along with China's rapid industrial development, there are serious negative impacts on the environment, including increasing pollution and decreasing natural resources. In 2007, China became the world's largest emitter of carbon dioxide and other greenhouse gases. The WTO carried out a report on air quality in 272 cities around the world, highlighting that seven of the ten most polluted cities in the world were in China. According to an environmental report, water is polluted in almost all parts of the country. to some extent, and half of the population lacks drinking water for their daily lives. According to some estimates, around 300 million people have to drink contaminated water every day. Currently, like any government, Chinese leaders are paying more and more attention to the country's environmental problems. Recognizing the importance of environmental protection, the State Environmental Protection Administration was officially transformed into a ministerial-level agency, the Ministry of Environmental Protection, in 1998. Recently, the China's environmental legislation has been strengthened and some progress has also been made to stem environmental deterioration. Due to all these factors, Chinese people have become increasingly careful not to use goods and services that produce pollution in some way. Uber, a ride-sharing company, introduced many gas-powered cars to the country and had to look for a new supplier. It is a way of convincing Chinese youth that it is not in China that it should contribute more to pollution and to do this it had to take measures like the introduction of electric cars and shift its attention towards public transportation.ConclusionThrough this report on "Uber's Presence in China", we have learned how Uber, one of the largest ride-sharing companies in the world, entered the Chinese market and how various factors ranging Competitors' policies have affected the operation of the business We have analyzed how the rules and regulations introduced by the government can affect the operation of some of the most valued businesses we have., 88, 1-19.