China’s ride-hailing industry records a 12.4% drop in June

News for Investors in Didi and other Chinese Ride Hailing companies. In June 2021 a total of 701.46 million orders were reported. This is a decline of 12.4 percent from the previous month according to the MOT. Among the major platforms, Shouqi reported a 20.4 percent drop in orders, while Didi Chuxing saw a decline of 13.4 percent in total orders.

Among all 236 online ride-hailing platforms, 13 platforms, including Shouqi Limousine & Chauffeur, UCAR, Didi Chuxing, Geely-backed Cao Cao Mobility as well as some other operators, completed more than 300,000 orders in the past month, with ten platforms losing business. 

In terms of compliance rate, Didi Chuxing, which has been put under a strict regulatory scrutiny over cybersecurity issues, only saw a rate of 39.5 percent – meaning only 39.5 percent of the company’s total orders were carried out by drivers and cars that have gained permission. In comparison, Ruqi Mobility Co has a compliance rate of 93.4 percent.  

Also during the month, a total of 3.49 million drivers and 1.33 million cars received licenses specifically issued for the online ride-hailing industry, with both figures increased 1.5 percent compared with May. As of the end of June, there were a total of 236 online ride-hailing platforms registered in the Chinese market.  

Among 36 major cities, the top five cities with the highest order compliance rates were Guangzhou in South China’s Guangdong, Xiamen in East China’s Fujian, Hangzhou in East China’s Zhejiang, Guiyang in Southwest China’s Guizhou, and Nanning in South China’s Guangxi Zhuang Autonomous Region.  

Other Chinese ride-hailing platforms have become more aggressive over the past week in promoting their services to drivers and passengers. Meituan just re launched their ride hailing app after the leader Didi Chuxing was removed from app stores due to cybersecurity issues. 

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