Uber car-hire app is losing profit in China

According to the company's CEO, Uber loses more than $1bn (£699m) a year in China due to fierce competition

The statement belongs to Travis Kalanick, Uber CEO speaking during a private event held in Vancouver. Reuters news agency later confirmed the figures with Uber China.

China is considered to be the firm's largest international marketplace. The US-based car hire company launched its services in 40 Chinese market cities in 2014. Its main competitor here is Didi Kuaidi taxi app. Didi Kuaidi has recently partnered with Uber's rival Lyft.

Commenting on the competition, Travis Kalanick declared:

"We're profitable in the USA, but we're losing over $1bn a year in China. We have a fierce competitor that's unprofitable in every city they exist in, but they're buying up market share. [...] I wish the world wasn't that way. I prefer building rather than fundraising. But if I don't participate in the fundraising bonanza, I'll get squeezed out by others buying market share."

Uber will invest $200m to boost its competitive services in emerging markets. Uber car-hire services are currently available in more than 380 cities around the world.