BUSINESS

China’s Ride-Hailing Industry Feels the Squeeze as Market Faces Overload

Published: Oct. 22, 2025 10:55 p.m. GMT+8

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The Ministry of Transport reported double-digit year-on-year declines in ride-hailing orders every month from April to September

China’s ride-hailing industry appeared to shrink sharply in September, with official data showing a steep drop in order volumes to 758 million — down from 989 million the previous year.

The Ministry of Transport reported similar double-digit year-on-year declines in ride-hailing orders every month from April to September. In August, orders fell to 789 million from 1.03 billion a year earlier.

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This is an AI-generated English rendering of original reporting or commentary published by Caixin Media. In the event of any discrepancies, the Chinese version shall prevail.

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China’s ride-hailing orders dropped to 758 million in September 2025, but the decline was overstated due to a new statistical method; the real year-on-year drop was closer to 4%.
Overcapacity persists: licensed drivers and vehicles surged about 18% year-on-year in October 2024, reducing driver earnings by 12.9% to 27 yuan/hour in 2024.
Price wars and competition, including from taxis and unauthorized vehicles, further pressured both ride-hailing platforms and driver income.

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Who’s Who

Didi Global Inc.: Didi Global Inc. is a dominant player in China's ride-hailing market, holding over 70% market share. Its China mobility unit saw significant growth in the second quarter, with 3.38 billion orders, a 12.4% year-on-year increase. However, the average price per order for Didi and the broader industry has been declining throughout 2024 due to intense competition and overcapacity.

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