Online Vehicle Hailing Service Platforms Come Back to Rational Competition in China

Source:iResearch May 15,20189:31 AM
At the end of 2016, the issuing of new policies on online vehicle hailing service led to the decline of vehicles on the vehicle hailing service platforms to some extent. At the beginning of 2017, the active users on online vehicle hailing mobile apps decreased. As more and more platforms obtain the operation certificate and rational competition centered on service quality comes back, the users gradually recover to a sustainable level. 

iResearch holds the opinion that issuing and implementing of the new policy on online vehicle hailing service conduct  a selection process for the industry, and only the platforms with good online/offline services , high quality resources of vehicles and drivers can own a strong competition power by attracting new users while retaining the existing clients.
Baidu, Alibaba and Tencent  accelerated the integration of mainstream online vehicle hailing service platforms. More state-owned platforms and private companies entered the market as well.
After the implementation of the new policy, high-end transportation with high-quality services within the policy framework will bring new chances to online vehicle hailing market

Some terms in the new policy are objectively beneficial for the high-end B2C vehicle hailing service platforms. Therefore, many high-end B2C vehicle hailing service platforms seized the chance to further expand the market. and via their differentiated features like high-end vehicle modes and upgrading of the services,they started their battle against C2C platforms like fast ride and vehicle sharing in online vehicle hailing service field. 

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