Gasgoo.com (Shanghai April 21st) – Recently, most car-sharing platforms have quietly lowered their subsidies for the drivers of their online car-hailing services. Some experts saw this reduction of subsidies as a pressure test for the online car-hailing services, which have long been supported and promoted by large subsidies driven by the need to compete for market shares, and an opportunity to establish a new balance between the online car-sharing platforms and drivers.
Reportedly, the subsidy provided by online car-hailing platforms for drivers now has dropped from 100 yuan for 12 orders to 100 yuan for 22 orders, which means the subsidy for each order only averages less than 5 yuan.
Except for the reduction in subsidies, the drivers are also upset that now the platform will assign orders for them directly, so they won’t have a chance to choose the customer at their own will.
Didi believed the new mechanism could enhance the customers’ experience by getting them service from the nearest drivers. Expert also believed this new approach may result from the analysis of big data and could contribute to improve efficiency.
While some drivers held different opinions. A driver complained when interviewed that sometimes the system may assign a customer 3 miles away from them while the customer’s destination is only 1 mile away, which is totaollyunprofitable.
Reportedly, Uber has lost 1 billion dollars in one year in Chinese market while Shenzhou also lost 3.7 billion RMB. Another rival Didi also reportedly spent 4 billion dollars in one year on the cultivation of the Chinese market.
Actually, the competition for market promoted by large subsidies has long been questioned. The subsidy is believed to be a strong promotion but may also mutiplyed bubbles in this industry due to some people may even purposely purchase a car to get into this business, which is totally against the original concept of online car-hailing service.
