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February 25, 2014

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Home » Opinion » Chinese Views

High-tech cabbies ignore customers on the street

By Li Xinran | February 25, 2014, Tuesday | Print Edition

Two new smartphone apps are paying customers to book taxis.

On the surface, this seems like a great deal as those only traveling a short distance will end up with a free ride.

However, there are still many people who do not own smartphones and expatriates and tourists who can not use Chinese-only apps.

As cabbies increasingly use the apps to secure customers, those who rely on hailing cabs on the city streets are being forgotten.  

Cab-hailing app Didi Dache has been endorsed by Tencent’s WeChat payment system while Kuaidi Dache has the backing of Alibaba’s Alipay.

Since February 17, random users who book a taxi via WeChat and use its payment system will receive between 12 yuan (US$1.97) and 18 yuan.

Its competitor promised customers 13 yuan in return for each ride. Cabbies are also paid by both apps, which are locked in a fierce battle to establish market share. 

Meanwhile, Shanghai’s Transport and Port Authority Director Sun Jianping has expressed support for both apps.

Perhaps Sun believes the apps will help reduce the amount of time and gasoline cabbies drive around looking for customers and boost their incomes.

The problem is taxi drivers are increasingly ignoring waiting customers on the street as they prefer using the apps since they get paid more.

More difficult to get a cab

I used to leave home at 8:45am and could usually hail a taxi within 10 minutes along Jianguo Rd W. But these days it’s almost impossible to get a cab within 20 minutes even though quite a few vacant ones pass by.

Sure it’s during rush hour, but I’m not the only one who has noticed it’s getting more difficult to hail a cab.

Qin Luzhi, a longtime newspaperman, complained that he was ignored by a vacant taxi recently when he was on the way for an appointment on Beijing Rd W.

Many cabbies can be seen staring at their smartphone screens while driving, which is extremely dangerous considering how busy and congested Shanghai streets are.

It’s hard to blame taxi drivers for using the apps since they can earn more. They work long hours to scratch out a living.

A Qiangsheng Taxi Co cabbie, surnamed Bao, told me last Friday that he had reduced his gasoline costs by 70 yuan per working day after installing the apps on his smartphone.

That adds ups to more than 1,000 yuan a month, substantial savings for cabbies, who earn an average of 4,000 yuan each month, according to Sun. 

According to the rules, which can be found at the city government’s website www.shanghai.gov.cn, taxi companies in Shanghai exist to serve people and earn a profit. They state that hailing cabs on the street is one of the major ways to book the service.

Now the most common way to get a taxi is in danger of becoming extinct. Street hailers are increasingly being ignored with both apps increasingly lifting their reward in order to get more customers.

The city government encourages people to take public transport whenever possible. But some people like Qin have physical problems that make it difficult to take a bus or subway. Taxis are ideal for people like Qin. But now Qin says he will avoid going out as it is too hard for him to hail a cab. I believe this new practice is unsustainable.

The payments offered to both cabbies and customers are just part of a sales promotion battle by the two IT giants to build their empires for future mobile applications. Both companies just want to win and make huge profits from the applications as well as derivative services generated from them. Their generosity won’t last forever.

Interestingly, the situation creates an opportunity for savvy cabbies who stick to the basics. With so many potential customers being stranded on the street, a taxi driver who ignores the apps may be able to earn more than before since demand remains strong.

 

Chinese Views


 

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