Uber continues its China expansion as it launches in Hangzhou and Chengdu

When the Uber team flashes the #UberEverywhere hashtag, they mean it. Just days after launching in four Indian cities simultaneously, the San Francisco-based company has opened its premium UberBlack tier for business in Hangzhou and Chengdu in China.

The launches mark the transportation network company’s (TNC) first foray beyond Shanghai, Beijing, Guangzhou, and Shenzhen. Whether or not Hangzhou or Chengdu constitute “second-tier cities” is a matter of semantics. In Uber’s case, the message is clear – Uber is coming to your Chinese city soon. Last July the company posted job listings on LinkedIn for 12 cities across greater China.

What are the local taxi markets in Hangzhou and Chengdu like? Looking non-scientifically at cab abundance and population, Hangzhou looks well-poised to benefit from an influx of on-demand vehicles. According to a report from Xinhua, 9,323 yellow cabs operate in Hangzhou, which has a population of 3.932 million people in the city proper.

As for Chengdu, a report from domestic media cites data claiming the city is home to 17,684 taxis, and a long term resident population of 5.29 million (according to Baidu Baike, buyer beware) in the city proper.

Uber will face competition from local players Didi Dache, which is active in 178 Chinese cities and Kuaidi Dache which is active in over 300. Didi is backed by social giant Tencent, and Kuaidi is backed by ecommerce titan Alibaba, so all three firms have plenty of cash to sustain a lengthy war.

We’ve yet to come across any news of backlash against Uber in China from government agencies or taxi associations. At the moment, it’s facing a possible closure in India for allegedly not abiding by laws concerning third-party online payments. Government authorities in Seoul and taxi associations in Jakarta are also shaking fists at the company, though it’s not yet clear if they’ll ban Uber outright.

See: 5 challenges Uber will face as it expands in Asia

Editing by Terence Lee, top image via Flickr user Paul Wolneykien