The boss of Uber has said the company is losing $1 billion (£700 million) in China every year as it faces a "fierce" competitor.

Uber CEO Travis Kalanick made the admission at a private event in Canada, according to local tech news site Betakit.

"We're profitable in the USA, but we're losing over $1bn a year in China," Mr Kalanick said. "We have a fierce competitor that's unprofitable in every city they exist in, but they're buying up market share."

Uber currently operates in 40 Chinese cities, and plans to expand to over 100 by early 2017.

Betakit also reported that the Uber boss revealed at the event in Vancouver that he had recently raised $200m to help it compete in emerging markets, like China.

Its big rival in China is Didi Kuaidi. It's it supported financially by powerhouse Alibaba and tech giant Tencent, and it recently partnered with Uber's US rival, Lyft. Mr Kalanick claims that Didi Kuaidi's market share has grown from around 1% at the start of 2015 to between 30% and 35% currently.

Referring to the $200m funding, the Uber CEO said: "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."