Uber Opponents Create International Alliance

Uber's competitors have collaborated to compete against it.

Uber’s opponents are uniting to add to its difficulties. Uber news affirmed its largest competitors are joining to attack the transporter by connecting their apps and efficiently launching an international ride-sharing platform. California-based company, Lyft Inc., and Beijing-based organization, Didi Kuaidi Joint Co., stated that they have allied to let users of every application to hire rides from driving partners of the other applications, while they are moving to another state. 

Didi also stated that it has also made an investment worth $100,000,000 in Lyft. Uber technologies revealed that each cab company would receive payment from its own passengers in their local currency, so they could be saved from the trouble of being charged for rides in foreign money. For instance, Chinese tourist in the United States could log up to their Didi application to hire and make payments for rides offered by Lyft, after which, Didi would transfer their money to Lyft.

The companies announced the collaboration at an event in New York, where their presidents, John Zimmer and Jean Liu, discussed upon their partnership with the media. A number of high profile personalities were present in the event, including Alibaba’s founder, Jack Ma, Carl Icahn, and Michael Zisser.

Uber news today reported that both taxi companies also intend to ally with two other taxi companies – the Singapore-based Grab Taxi Holdings and India-based Ola. The agreement could play an important role in luring global users towards Lyft when they tour the United States, assuming the opportunity does depend upon the same software they utilized at home. Many Asian users tend to pay through methods other than credit cards, and those possessing credit cards may be concerned about fees for foreign charges.

Collaborating with the Eastern cab companies could prove to be first move towards an extensive global expansion for businesses. Though Uber previously stated that it would reach its first city outside the largest economy by the end of this year, it has yet to proclaim specific proposals for international growth.

The agreement is the first concentrated effort to defeat Uber across regions after four years of its aggressive growth outside the U.S. Its management should strive in the best possible manner to dominate the competitive market where several service providers are trying to get ahead of each other.

Uber has suffered from mishaps and challenges in the past, which has harmed its credibility. International alliance of rivals would certainly affect it if it fails to counteract appropriately.