Uber Brand Plans Big Expansion in China

Uber Technologies Inc. says it will make a major update to its mobile app and expand its ride-hailing service to 400 cities in China by the end of this year.

Uber sold the assets of its China operation to DiDi Chuxing, the country’s largest ride-share and taxi-hailing service, in August. Uber received 5.9% of the combined company. The deal left Uber’s brand alive in China, but the two services no longer will compete for drivers, the Shanghai Daily reports.

Uber’s upgraded app will blend Uber’s easy-to-use interface with elements of DiDi’s own app. The update will enable the two brands to lower operating costs by synchronizing ride dispatches and assigning the most readily available Didi or Uber driver to each customer’s call for pickup service.

But the Shanghai Daily says some users say the cost per ride under the integrated services has gone up. The newspaper also notes that China’s Ministry of Commerce complained last month about not being notified ahead of the merger as required by the country’s anti-monopoly law. The ministry is now assessing the monopoly concerns, according to the report.