(Yicai Global) Jan. 25 – Chinese ride-hailing service Yidao Yongche Inc. is offering Beijing users discounts of up to 20 percent through a new fee calculation system as a price war takes hold in the sector.

Beijing-based Yidao will also reduce its cut of fares in 13 cities including Nanjing, Harbin, Guangzhou and Shenzhen to 12 percent from tomorrow, and pass on this saving to passengers. The new discounts mean that the firm has lowered prices in 20 cities nationwide.

Didi Chuxing currently dominates the market with a 90 percent share across the country, though it is facing new rivals in the form of Meituan Dianping, Yidao Yongche and an upcoming collaboration between bike-sharing giant Beijing Mobike Technology Co. and CAR Inc., China's largest car rental provider.

Yidao previously announced price reductions of five percent in seven cities, which were the same cities that Meituan Dianping planned to enter. After the firm reduced commission in those seven cities, drivers have become more willing to accept orders, so order volumes have continuously increased. Total Yidao orders have expanded more than six-fold this year.