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The key issues

The Lyft company focused on operating in the USA and Canada serving more than 50 states and district of Columbia unlike Uber which was interested in maximizing on opportunities in many nations. However, the Uber business was facing major challenges and criticism in the early stages with one of them being the high pricing model with referred to the charging customers at higher prices, especially during peak hours. the company gained a lot of attention, especially during the snowstorm in New York in the December of 2014 when the uber charges increased by more than eight times and therefore attracted negative publicity (Feix, 2021). The CEO of the company was able to defend the practice by arguing that it reflected the forces of demand and supply in the market. In China uber found itself in the position of a much and smaller late entrant facing major competition from the taxi companies in China such as Quaidi and Didi which covered more than 80% of China is a huge market of at least 800 million City dwellers. In the Republic of China, the Didi company was much more successful compared to uber in the aspects of the legal legitimacy that was acquired via the local connections (Carroll et al., 2022). The Didi company was acquiring support from the Chinese government and major investors increasing the opportunities available for this company and like the case of uber. The Chinese taxi company was able to pursue an aggressive strategy that was aimed at attracting as many drivers to their applications as possible. On one hand, the primary intention of disrupting the taxi industry by replacing its drivers and services however the Chinese company was interested in not only venturing into taxi services but also offering non-traditional transport services in their portfolio. Both companies were offering services at subsidized values and bonuses to the arrivals at the peak hours and photos that were able to hit the target rides. The uber company only managed to capture at least 11.5% of the Chinese market (Jochen and Christopher, n.d.).

The solution

The Uber company should continue to operate in China and other countries, but there are a number of things that the company would have done differently to give it a competitive edge in the Chinese market comparable to its good performance in other countries Additionally, the management and CEO of the Uber company should have spent in market research to comprehend the specific business environments in the Republic of China, the local culture, protectionism, and the elements that had contributed to the success of the taxi companies in China (Feix, 2021). Understanding the Chinese market would be much better rather than just transplanting its San Francisco's model of operations in the new nation since the Chinese culture is quite different from that of Americans and other countries. Even though the uber company tried to work closely with the transport ministry of China, the absence of major Chinese investors and political figures in the company was a major drawback. It would be fundamental for the uber company to diversify its services and venture into other areas that the local taxi companies had not invested such as parcel services (Jochen and Christopher, n.d.). Therefore, rather of starting a new trend in the People's Republic of China, the uber company appeared to be playing catch-up. It would be wise for the Uber company to be innovative and creative in order to come up with a new model of services and products that would breach the existing gaps in the industry rather than simply deciding on the mechanisms of competing with the already established businesses in the Republic of China.

References

Carroll, A. B., Brown, J., & Buchholtz, A. K. (2022). Business & society: Ethics, sustainability & stakeholder management. Cengage Learning.

Feix, T. (2021). Valuing digital business designs and platforms: An integrated strategic and financial valuation framework. Springer Nature.