(Yicai Global) April 11 -- China's cheap ride-hailing era looks to be coming to an end as the cost of finding a cab online begins to surpass that of taking a regular taxi.
Didi Chuxing, the world's largest ride-hailing platform, unveiled an hourly pricing system and new fee standards yesterday, adjusting its starting price and per-kilometer pricing, Beijing Business Today reported.
Under the new model, the estimated fare for a trip from the newspaper's office to Guomao Subway Station, about 10 kilometers, comes in at CNY29.4 (USD4.6) between the hours of 10 a.m. and 5 p.m., CNY37.2 between 5 p.m. and 9 p.m. and CNY42.4 between 9 p.m. and 11.50 p.m., according to the Didi Chuxing app. The prices compare to between CNY28 and CNY30 for taking a regular taxi.
Fares at other ride-hailing platforms, including Yidao Yongche Co., Ucar and Shouqi Limousine and Chauffeur, are all higher than typical taxi rates, indicating bargain ride-hailing is already a thing of the past.
Low prices, which were key for platforms looking to penetrate the market, means offering more subsidies, which isn't good for long-term corporate development, said an insider. New government ride-hailing regulations, which set restrictions on cars and their drivers, could further exacerbate the mismatch between supply and demand, he added.