Didi Chuxing in China Has Increased Price of Taxi Service

Didi Chuxing, one of major providers of Taxi service in China, has increased price of their service by about 33% in many cities in this country since May. Meanwhile, the company has also cut down subsidiaries offered to drivers by about 33%.
The service price has reportedly increased to RMB 1.8 yuan per kilometer from RMB 1.5 yuan per kilometer. The company has put an end to promotion of this service, leading to rise in price, according to insiders. However, companies like Didi Chuxing have not noticed users of adjustment on price.
Customer loyalty and slight change may ensure market shares of Didi Chuxing. Moreover, it is reasonable that companies have increased price of taxi service, according to experts. However, investor of the company required decrease in subsidiaries, leading to rise in price, as other analysists pointed out.
Low price, due to subsidiaries, was meant to attract customers and make them know how to take the service. Now, total tenders of taxi service of Didi Chuxing have been more than 14 million, leading to scale advantage in the Chinese market. Therefore, rise in price may not cause considerable drop in tenders.
Providers have increase price of taxi service, putting an end to price war among them.
her than 2m units’ capacity in national 2020 plan. Research from China Auto Technology Institute also shows that although China is the biggest global alternative energy consuming market, it has a low production volume and efficiency. More than 100 auto companies produced more than 700 models in the previous five months, with an average production volume of about 150 units.
Some experts believe that, although China has a larger market scale, our technologies are lagging behind the foreign counterparts. Power cells are key technology of alternative energy vehicles, but few companies possess global competitiveness and innovative power, with a low capacity utilization rate and unstable product quality and performances.


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