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Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

The development of online ride-hailing has gone through seven years, and the entire system has tended to mature, bringing great convenience to people's daily travel. However, looking back at the history of this ride-hailing car, there is one problem that has not been solved until now, that is, the unreasonable income of drivers.

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

In the Didi era, the commission was too high

When it comes to online car-hailing, it has to be mentioned that Didi. Since 2017, Didi has occupied 90% of the market for online ride-hailing and become the first enterprise of online ride-hailing. However, the problem of one industry being the only one is also obvious, that is, it is easy to form a monopoly. On July 7, 2021, the State Administration of Market Supervision imposed administrative penalties on 22 monopolistic acts in the Internet field, of which Guangdi Didi accounted for eight. How did Didi get such a big market? As with the usual routine of e-commerce, burning money subsidies hit the market.

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

In this process, Didi burned a lot of money, and the online ride-hailing market is still quite harmonious. However, Didi's ultimate goal is still to make money. Slowly, subsidies are less, and the commission becomes higher and higher. The driver's life began to get sad. On May 7, 2021, Didi issued a note that the data shows that the percentage of 2020 is about 20.9%, of which there are some orders with a percentage of more than 30%, but not much. Many ride-hailing drivers say that the gross profit is low, the cost of fuel is high, and the commission is as high as 20% In fact, in the end, they can earn very little.

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

Didi went downhill, and the Ministry of Transportation intervened

On July 16, 2021, the Cyberspace Administration of China, together with the Ministry of Public Security, the State Administration for Market Regulation and other departments, jointly entered Didi's headquarters to conduct a network security review of Didi. Prior to this, Didi had been banned from registering new users. Under the banner of supervision, Didi's market value fell sharply, and its market share began to decline sharply. Once ranked behind Didi, many online ride-hailing platforms in the second echelon such as Cao Cao Chuxing have also grabbed the market.

At the same time, the supervision of e-commerce by relevant departments has been strengthened again, and they have begun to pay attention to the rights and interests of drivers. On February 24 last month, the Ministry of Transport proposed a "sunshine campaign", requiring online ride-hailing vehicles to disclose pricing rules and reasonably set the percentage of the platform. In short, it requires the platform to be "transparent" in billing. According to the "National Survey Report on the Survival Status of Online Ride-hailing Drivers" released by well-known institutions, more than 70% of drivers believe that the platform fee is too high.

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

The driver had something to say, in addition to the draw, there were more problems

Although the draw is transparent, many drivers do not seem to think that they can solve the problem. In a program, a 7-year online ride-hailing driver said that when the daily flow is relatively high, the draw is about 10%, but once the flow is lower, the pumping achievement will increase to about 15%. In addition, fuel costs account for 20%, vehicle maintenance and repair costs account for a part, and there is little net profit left. The driver prefers that the platform will be able to stabilize the draw at 10%. From the driver's speech, it can be seen that after Didi's decline, the situation of multi-platform competition has reduced the proportion of the draw, but from the polls, the driver still has not been able to live a "good life".

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

To be honest, the 10% to 15% draw is already much better than the previous Didi's 20% or more, and there is another reason why drivers can't make money. If other problems are not solved, the cut will not be better even if the driver is further reduced. First of all, there is the problem of low order prices, which are caused by two aspects. First, compared with taxis, the starting price of online ride-hailing cars is extremely low; second, the mileage unit price of online ride-hailing vehicles is also lower. This makes it often for ride-hailing drivers to run three kilometers to earn taxis one kilometer. The profit of running a single is too low, and then drawing on this basis is tantamount to worsening.

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

Second, the issue of subsidies. Most passengers should know that when using ride-hailing services, the platform will give subsidies and concessions, such as full reduction activities and discount activities. But what few people know is that it is the driver who pays for it. According to a number of drivers, Cao Cao, T3 and other well-known online ride-hailing platforms have done subsidies for passengers, but the way is to subsidize by deducting the driver's money, which further reduces the driver's income a lot.

Finally, the platform order distribution is unstable. In fact, this problem has not been solved since the beginning of the popularity of online ride-hailing. Many drivers said that sometimes orders will keep flowing, but sometimes there will be no orders for twenty or thirty minutes. Not only that, sometimes the platform often sends some unreasonable running orders, such as running two kilometers to pick up a list that is only one kilometer. This makes the cost of the driver rise further, and the profit is lower.

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

Platform fights, drivers suffer

To sum up, the problems faced by online ride-hailing platforms are actually more than we think, and they cannot be solved by simply reducing the achievement of pumping. Without experiencing the life of an e-hailing driver, it is difficult to know how difficult it is for an e-hailing driver. The reason why the development of online ride-hailing has been so long, there are still so many problems, and the culprit is still caused by platform fights.

Why is the starting price and mileage unit price of ride-hailing much lower than that of taxis? Or is it not because the platform frantically lowers the price in order to grab the market? Why is the subsidy for online ride-hailing so large that drivers pay for it? Or is it because the platform fights fiercely and you don't want to burn too much money? Why is the platform algorithm unreasonable, causing drivers to run more and earn less? Is it not because the platform has taken all the money to burn the market, and the technology piece has not been done at all?

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

The era of Didi's rise was accomplished by burning money and then monopolizing the market. After Didi went downhill, the second echelon of the online ride-hailing platform climbed up, and the Meituan taxi returned, causing a more fierce market struggle. It can be said that the entire online ride-hailing market has never escaped the inner volume. And a considerable part of the cost of this inner roll is borne by the driver. (Bluegrass)

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

Ministry of Transport: From Didi to Cao Cao, why can't drivers' wages rise?

Under supervision, the online ride-hailing car is transparent, and the driver earns less?

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