Let’s not be too harsh on the Chinese here for a minute. The broader conversation is much more difficult. In this specific case, Uber lost because it (as so many others do) failed to understand the Chinese transportation problem. And if you’ve visited China, you’ll understand that. Uber, like other companies mentioned in this post, tried to apply a solution for an American “problem/opportunity” to a foreign market. The Taxi industry in China is not the issue (as it was perceived to be in America). In China, they’re prevalent, cheap, well maintained and clean. However, in excessive gridlock, the car doesn’t matter if it cannot get to you, let alone go anywhere when you get in it.

Uber tried to solve a problem that didn’t exist because it assumed American issues are global issues.

Didi, on the other hand, is far more than simple “ride sharing”. It provisions services for all forms of transportation (including ride sharing when appropriate) so users, who know the local landscape, can determine the most appropriate form of transportation given local issues at specific points in time. Maybe Uber can learn something from this and provide a better service to its global customers?

If you really consider other “failures” in China, you’ll likely see this very common issue repeating itself. Alternatively, if you look at the successes of Chinese ventures into other foreign markets (and there are more than most realize), you’ll find they have learned this lesson.