Meituan-Dianping’s Car-Hailing Service Hits Shanghai’s Streets
After months of speculation, Meituan-Dianping, one of China’s largest online services platforms, has rolled out its car-hailing business.
Starting Wednesday, users in Shanghai can hail rides through Meituan’s mobile app, which already offers a range of services such as food delivery, hotel bookings and movie tickets.
The rollout comes after months of media speculation about where the company would launch the service, as well as a potential price war with car-hailing leader Didi Chuxing Technology Co. Ltd., which itself recently entered the food takeout space.
Meituan has been conducting car-hailing trials in Nanjing since early 2017, and said in December that it aimed to launch the service in at least seven cities, including Beijing and Shanghai.
But the company’s efforts to enter China’s capital hit a regulatory hurdle as it was reportedly summoned by the transportation bureau “for a conversation” in January.
Now, however, a relaxation of regulatory barriers and a nationwide rollout are widely expected, which may put Meituan on course to compete with Didi, which has a greater than 90% market share of China’s car-hailing sector.
“Moving into car-hailing is logical for Meituan, which can channel its large food-delivery user base into other services,” one investor told Caixin.
The move has gotten Didi’s attention, which recently reintroduced subsidies for drivers in a bid to thwart competitors, Caixin has learned.
The subsidy program, in seven Chinese cities including Shanghai and Beijing, allows selected drivers to purchase membership cards that qualify them to receive extra monthly pay.
Meituan said it will not charge drivers to use its platform for the first three months in Shanghai. In the Nanjing pilot programs, its commission fee for drivers was 8%, compared with Didi’s 20%, Caixin has learned.
A $4 billion fundraising round late last year put Meituan’s valuation at $30 billion, behind Didi’s estimated value of $56 billion, after the latter raised $4 billion in December.
Contact reporter Mo Yelin (firstname.lastname@example.org)
Aug 19 19:23
Aug 19 17:59
Aug 19 16:18
Aug 19 16:20
Aug 19 13:02
Aug 19 10:27
Aug 19 09:53
- 1Praise for JD and Huya, Less Excitement for Tencent Music and DouYu as ‘Team Tencent’ Reports
- 2Casino Giant Galaxy Entertainment’s H1 Profit Drops 7% as High-Rollers Stay Away
- 3TCL to Unveil Own Smart Screen This Week, Sources Say
- 4CX Daily: Hong Kong Cuts GDP Growth Forecast, Announces Stimulus Amid Unrest
- 5Does China Care About Climate Change?
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas