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The dumping of online car-hailing at low prices has forced taxis to start discounting and reducing prices!

author:Ride-hailing observation room

The low-price strategy of online car-hailing is corroding the entire travel industry, and under the sweep of low prices, not only is it difficult for online car-hailing drivers to guarantee their income, but even the once invincible taxis have begun to lose and are forced to join the price competition.

Recently, some netizens broke the news that in Hefei City, Anhui Province, some local taxi drivers began to spontaneously carry out discount promotions, it is reported that some local taxi drivers directly put up posters on the car, the starting price is 7 yuan, and the whole city is discounted, and some drivers even use the bee to loop the news of taxi discount promotions to attract passengers to take taxis.

The dumping of online car-hailing at low prices has forced taxis to start discounting and reducing prices!

Taxi price reduction is actually just one of the true portrayals of the current serious volume in the travel industry, under the low price, not only the driver's income is difficult to guarantee, some online car-hailing platforms also have the problem of difficulty in withdrawing cash, the recent outbreak of Wanshun taxi withdrawal can not be accounted for and some small platforms continue to adjust the withdrawal time is the best proof.

The phenomenon of taxi drivers voluntarily reducing prices is ostensibly a price competition between taxis and online car-hailing, but in fact it is a low price of online car-hailing. As we all know, in order to attract passengers and please passengers, online car-hailing platforms continue to launch marketing strategies such as special prices, fixed prices, coupons, discounts, and 0.1 yuan rides.

Under the low price involution, both taxis and online car-hailing continue to be fully redeemed.

Taxi has always been the implementation of government pricing, in the current competitive situation, taxis must change the existing tariff system in order to achieve a new leapfrog development, it is understood that some cities have begun to implement a new system of rules for taxis.

According to the notice issued by the relevant departments of Kunming in March this year on soliciting opinions and suggestions on the preferential freight rate activities of cruising taxis in the five districts of the main city, from June 1, 2024 to May 30, 2025, it is planned to reduce the starting price, extend the waiting time, cancel the National Day holiday charges, enhance the competitiveness of the taxi market, and strive for more customers, especially short-distance orders.

The dumping of online car-hailing at low prices has forced taxis to start discounting and reducing prices!
The dumping of online car-hailing at low prices has forced taxis to start discounting and reducing prices!

Not only in Kunming, in February this year, the official website of the Guangzhou Municipal Development and Reform Commission announced the "Guangzhou Cruise Taxi Freight Rate Optimization and Adjustment Hearing Plan".

The plan proposes that the management method of cruise taxi tariff is to be adjusted from government pricing to government guidance price, and adopts the mode of "benchmark tariff ± floating range", and the starting price, renewal price, and waiting fee participate in the floating.

Judging from the current market situation, the price of online car-hailing is generally lower than that of cruise taxis, and it is more flexible. Therefore, in the competition, online car-hailing with lower prices and more flexible freight rates undoubtedly occupies an obvious initiative.

However, once the cruising taxi starts to adjust the floating fare, it will allow the cruising taxis, which have been "tied" in terms of pricing in the past, to gain more freedom and flexible adjustment space, which will inevitably allow them to recover their competitive disadvantages with online car-hailing.

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