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
