CASE STUDY: Uber vs. Didi: The Race for China's Ride-hailing Market
Case questions:
1. How attractive was the taxi industry (before Uber and other ride hailing players
entered?)
2. How does creating and sustaining competitive advantage in platform business (like
Uber) differ from pipeline business (like a taxi company)?
3. What was Uber’s value innovation and how did the firm create it?
4. What is Uber’s competitive advantage and how did it transfer and compete in an
emerging market context like China?
[Question 5 requires you to research outside of the case]
5. On August 1st, 2016, Uber agreed to sell its China operations to rival Didi,
ending a multi-billion dollar battle in the Chinese market that caused heavy losses
for both car-hailing companies. If you consult the business press, you will find that
here are many views on why Uber gave up on China. What is your group’s
assessment of why this happened? What might other western firms learn from
Uber’s experience in China?6.Discuss the Strategic Options of Uber
The following papers may help in your analysis of the case. You will find pdf. copies
of these papers by searching for them at: www.goggle.scholar.com
1. Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: From theory to Practice.
California Management Review 47(3).
2. Van Alystyne, M., G. Parker and S.P. Choudary (2016) “Pipelines, platforms and the
new rules of Strategy” Harvard Business Review, April.