Uber CEO Travis Kalanick admitted the company is burning through about US$1 billion a year trying to secure a foothold in China, but maintains this is still sustainable.
Speaking to reporters during a business forum in Hainan, Kalanick said revenues elsewhere more than compensate for the huge losses in China.
"Our top 30 cities are generating over $1 billion in profit a year, just our top 30 cities and that profit multiplies every year because we’re growing," Kalanick said.
"So that helps us to sustainably invest in our Chinese efforts. Because of the profits we have globally, this is something we can do for the long run."
Kalanick said its expensive strategy is starting to pay dividends with a 30% market share now compared to only about 2% a year ago.
The dominant player by far in China is Didi Kuaidi which the Uber CEO claims is ‘unprofitable in every city that they exist in.’
