Didi Skims Nearly One-Fifth of Driver's Fare for Each Ride
Zhao Chenting
DATE:  Apr 23 2019
/ SOURCE:  yicai
Didi Skims Nearly One-Fifth of Driver's Fare for Each Ride Didi Skims Nearly One-Fifth of Driver's Fare for Each Ride

(Yicai Global) April 23 -- The head of ride-hailing at Didi Chuxing has  revealed the Chinese mobility giant charges its drivers an average of 19 percent commission for each fare they take.

Didi Executive President for Ridesharing Kevin Chen revealed the figure for  the first time at a question-and-answer session yesterday in response to  rumors that the Beijing-based firm charges drivers one-quarter on  fares.

The session was held as part of the company's efforts to boosts its  engagement with the public amid scrutiny of the platform's safety  following the murder of two passengers last year. 

Commission  fees on the platform vary, Chen said, adding that not all purchase  orders are charged 19 percent. Around one-fifth of fares entail fees of  over 25 percent while another fifth incurs a fee of less than 15  percent, he added.

The platform does not take any fees from drivers related to remote dispatching, dynamically-adjusted prices and tips.

Operating  expenditure for ride-hailing made up over one-fifth of total revenue  from the unit in the last quarter of 2018. Monetary incentives for  drivers made up seven percent and operation costs accounted for around  10 percent. Rigid costs like tax payment and online commission charges  came to around four percent.

As for the cause of the deficit, the  total value of various cost and fees (21 percent) exceeds the commission  the platform charges (19 percent) and the difference is compensated by  Didi through the use of previously raised funds, Chen explained. 

The situation cannot continue in the long  term or funds will become exhausted, he said, adding that it has  started to improve operating efficiency and implement stricter cost  controls.  

Editor: Liao Shumin, William Clegg


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Keywords:   Didi Chuxing,Loss