Uber to quit Macau after under 10 months as drivers rack up $1.25m fine
UBER Technologies Inc. will exit Macau in September, just less than 10 months after launching there.
According to a letter from Mike Brown, Uber’s Asia Regional General Manager, the ride-hailing giant planned to pull out from the city as its drivers have been fined a total of US$1.25 million (10 million patacas) in its short time operating there.
Uber Macau General Manager, Trasy Lou Walsh said that the company is committed to keep serving the riders and drivers of Macau.
“We continue to seek opportunities to work with the government on modern ride-sharing regulations that will give us the chance to keep serving the people of Macau,” she said.
Uber has about 2,000 full time and part time drivers in the China-ruled city and the drivers have been notified of the upcoming suspension in operations.
While Macau isn’t a large market – the total population only amounts to 652,500 people – Uber’s exit will be another blow for the company’s immense efforts to expand in the region.
Uber has recently sold its operations in China to local competitor, Didi Chuxing after a costly two-year battle. Both parties came to a deal that gives Uber a 17.5 percent stake in Didi.
Meanwhile, Uber reported on Thursday a total loss of at least US$1.27 billion in the first half of 2016. It has also lost at least US$2 billion in the two years in China.