(ECNS) – Many passengers complain that they are paying more as China's ride-hailing service companies have lowered financial incentives to drivers and passengers in many cities, Chinese-language newspaper Legal Mirror reported.
A man surnamed Zheng, in Changchun City, Northeast China's Jilin Province, usually spent 27 yuan ($4.1) for his 12-kilometer journey from home to office, but must pay 39 yuan since Didi Chuxing reduced discounts.
In the capital city of Beijing, passengers also had to pay more for the same distance, meaning the economic advantage over taking a taxi was lost.
In Liaoning Province's capital of Shenyang, passengers said the travel cost increased from 3.4 yuan on Aug 4 to 4.17 yuan on Aug 7, and 6.22 yuan on Aug. 12, all across the same distance.
A driver said Didi Chuxing changed the subsidy given to drivers in early August from 60 yuan for 20 trips to 50 yuan. Another Mercedes-Benz driver also said the app first provided a subsidy of 50 yuan for ten trips, then 16 trips and now 26 trips. He was considering giving up the job due to rising costs and the lower subsidy.
An Uber driver in Shenyang said the subsidy declined sharply from Aug. 1. He made 2.5 times the transportation fee if he gave rides during the morning and evening rushing hours, but now he makes two times at most.
Data show that the starting rate for Didi Chuxing is now 1.8 yuan per kilometer and 0.5 yuan for one minute of driving, with a minimum cost of eight yuan. But before June, the starting rate was 1.5 yuan per kilometer and 0.3 yuan for each minute of a journey.
Media reports showed that Didi Chuxing has raised prices by about 20 to 30 percent.
Didi Chuxing, which has merged with its rival Uber, said it will continue offering subsidies to drivers and passengers.
Insiders said the use of pricing wars to attract customers in the past was not sustainable and that the ride-hailing service providers will reduce subsidies, while public transportation such as the subway and buses are still the most cost-effective choices.
