Uber invested $1 billion for its China operation

Uber, the San Francisco fastest growing startup announced that it has invested almost $1 billion in additional funding specifically for China market. The company has been heavily investing for China operation as an effort to enter the growing demand for the service has been growing there.

The investment made as the company is planning to obtain the new permit required from the Chinese government for all car-hailing businesses in the country according VentureBeat. The additional commitment made is also a strategy by Uber to make sure the locally founded company, Didi Kuaidi which operate using the same module to take over the market share.

Currently, Uber which is officially registered as "Shanghai Wubo Information Technolgy" is the largest registered internet company there with a registration capital of $330 million. By obtaining the proper permit, Uber plans to extend its operation in more than 100 cities in China in the next 12 months as reported by Reuters.

Uber's biggest rival Didi Kuaidi is in the process of applying the same permit. Didi Kuaidi is backed by the China e-commerce giant Alibaba Group Holding Ltd. And Tencent Holdings Ltd. The company is valued to be worth $16 billion according to Business Insider, a huge amount considering it operates only in China.

Uber told VentureBeat through an email that the company headquarters in China has been actively preparing the required documents for the process. The permit will allow the company to seek more drivers in the region.

Both companies, Uber and Didi Kuaidi is locked in a turf war as the Chinese company has been gaining more popularity compared to Uber. Uber's latest report saw the company jobs opening increase three times more this year. Most of the new jobs are created in China and India as the company has been aggressively promoting its service in both countries.

Besides applying for a permit, Uber also said that the company had released its API in China. The move allows local developers to use Uber's service in their own app. This is a move that Uber hopes will ensure the company's app can be used better in China. The company also has been giving lots of promotion and subsidized to its customers and drivers as their strategy.

Besides Didi Kuaidi, Uber also has another competitor in the United States. Another San Francisco startup known as Lyft has been getting some popularity too as Uber alternative. However, the service is a little bit different compared to Uber.