Smartphones Essential for China's Taxi Drivers Amidst Fierce Competition
Didi dominates the ride-hailing sector in China. Taxi and ride-hailing drivers use numerous smartphones to acquire customers. Increased competition and market saturation are affecting drivers' incomes.
The popularity of ride-hailing services in China can be traced back to early technological adoption. Didi, the major company with a market share of over 70%, was founded in 2012. By December of last year, the number of domestic ride-sharing app users in China had exceeded 500 million.
The Transport Ministry reported that over 7.1 million licenses for ride-hailing service drivers had been issued by June, doubling in just three years. Trips hit a peak of 971 million in June.
Deng, a cab driver in Shanghai, said, "I've been finding most of my customers through Didi recently," as he monitored the app. Didi provides rides from both private drivers and taxi companies, expediting the procedure by handling the destination and payment through the app.
Smartphones have become essential tools for taxi and ride-hailing drivers. Xu, another cab driver, has four smartphones strategically placed near his driver's seat. He went on: "We live in an age where we find customers through apps, so I have multiple smartphones to run multiple apps." One of Xu's smartphones is dedicated to driver communication via WeChat, while the other three are used for other ride-hailing apps such as Didi.
The development of ride-hailing services has provided flexibility for drivers like Zhang, who switched from being a taxi driver in Shanghai to a Didi driver eight years ago. Zhang said: "When I worked for a taxi company, I went to work every other day, but since registering with Didi, I can work every day." However, increased competitiveness is a source of concern, since drivers are now need to work longer hours in order to reach their financial goals.
Despite the convenience ride-hailing services offer, over-competition is a growing issue. In Guangzhou, the average daily income for ride-hailing drivers dropped by 12% to about 312 yuan (US$43.67) as of May, according to the city's transportation bureau. Authorities in cities like Chongqing, Suzhou, and Jingdezhen have cautioned potential drivers about the saturated market.
In addition to market saturation, drivers confront the impending threat of automation. In 2019, the tech firm Baidu began testing fully automated Level 4 self-driving taxis in Changsha. By 2021, Baidu will establish a paid commercial service in Beijing for robotaxis that operate without a human driver, with plans to expand to Wuhan. This advancement challenges traditional drivers, raising concerns about job security and the personal touch in customer service.
Additionally, in February, the Chinese startup AutoFlight conducted a 50-kilometer demonstration flight between Shenzhen and Zhuhai, demonstrating the country's advancements in futuristic transportation solutions. This demonstrates China's progress in the field of flying taxis.
Ride-hailing services booming in China, with Didi leading the market.
Taxi and ride-hailing drivers rely on multiple smartphones for customer acquisition.
Increasing competition and market saturation impacting drivers' earnings.
Source: NIKKEI ASIA