A logo of a car-hailing service [Photo/Internet]
Everything changes fast on the Internet, even in the car-hailing services industry. A newspaper report said the car-hailing apps industry is experiencing a quitting wave.
A research by the newspaper found that some drivers, especially part-time drivers who have regular jobs during the day, are leaving the industry as they are receiving lower subsidies for each ride.
Drivers complained that the subsidies offered by the car-hailing companies kept falling over the past two months, and that if the situation continues they will hardly be making any money.
A driver surnamed Zhang has been a taxi driver since 2002 when he relocated from Hunan Province to Shenzhen. Zhang decided to leave the taxi industry and became a car-hailing driver in May this year.
To qualify as a professional driver of a car-hailing app company, Zhang spent more than 100,000 yuan (US$16,110) buying a car and earned almost 10,000 yuan in the first week.
His earnings, however, began to drop from July. Though he works about 14 hours per day, his monthly income has decreased to around 6,000 yuan.
The situation is even worse for part-time drivers. A part-time driver for Didi Kuaidi, one of the most dominant car-hailing apps in China, was not happy with the subsidy.
“The subsidy rate is 2.2 times the fare today, which means I can earn 22 yuan if it costs 10 yuan for a ride,” said the driver. “But the rate is fluctuating every day and when the rate is low, we don’t feel like working.”
A representative from Didi Kuaidi said they adjust the subsidy rate according to real-time traffic conditions. They added that all services provided by Didi Kuaidi in every city they cover are increasing in status but denied that drivers are leaving because the subsidy rate is dropping.