Chinese ride hailing price war is decelerating

Chinese Ride Hailing

Didi Chuxing, China’s leading car hailing app, has been quietly increasing its prices in several cities since last month, in a sign that the country’s cash-burning ride app wars may be decelerating. The company, which claims to have an 80 per cent market share of the local ride hailing market, has been locked in a costly price war with US competitor Uber since last year, when the San Francisco based app began a concerted push into China. Generous subsidies, sometimes amounting to three times the price of the fare, meant that until recently both car hailing services were less expensive than a regular taxi. However, in a sign that Didi may be conserving its ammunition, prices for its rides throughout June appear to have risen by one-third in a number of cities, and drivers confirmed that subsidies had been cut by an equivalent amount.

 

Ma Fangjing and Charles Clover

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