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August 25, 2015

WeChat cuts ties with Uber

Tencent trying to promote local taxi service Didi Kuaidi.

By CBR Staff Writer

WeChat has kicked Uber completely out of its service in China in an apparent effort to support domestic taxi service app Didi Kuaidi.

Didi Kuaidi recently raised $2bn in private equity funding from investors including Tencent, which owns WeChat and Alibaba, indicating that the group is trying to promote its own service.

Tencent has, however, blamed Uber’s violation of WeChat policies and technical glitches for the ban.

WeChat provides a payments infrastructure, location-based services platform, and app development, in addition to being able to communicate directly with customers through such apps.

In its recent letter to investors, Uber said that it is planning to spend up to $1bn in China this year, as the country accounts for half of the top 10 busiest cities by number of trips booked through the app, reported Bloomberg.

However, according to market research firm Analysys International, local taxi hailing app Didi Kuaidi is taking the lead with 78% of the country’s private car business in its hands.

Uber has been facing a tough time in China, as in August, its Hong Kong offices were raided by Chinese officials and three staff members were arrested for illegal use of vehicles for hire.

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