Car-Hailing Service: New service provider enters Shanghai taxi market

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Switching gears now. Lifestyle services website Meituan Dianping has launched a car-hailing service in Shanghai, adding competition to market leader Didi. Sun Caiqin has the story.

The Meituan taxi-hailing app was giving out vouchers to attract users. In the first three months, Meituan will waive the 8 percent commission it charges drivers for each ride. Didi drivers pay a 15 to 20 percent commission per ride.

When we choose which platform to work with we will always decide based on how much we can earn. We will earn 20 percent more from Meituan.

The company said it has already got its license from the transportation authority.

WANG XIAOGANG MEITUAN DIANPING "We will adhere to the taxi starting price on our platform. We also don't have the add price function that allows users to bid for a cab. Drivers on our app can't see the destination before picking up passengers."

CAI JINGYAN SHANGHAI TRANSPORTATION COMMITTEE "According to the rules, these apps need to connect operational data with the transportation authority for monitoring. So far, the authority hasn't connected with Meituan Dianping. All the cars also have to have a local license plate."

Didi's stakeholders include Apple, Alibaba Group Holding and Tencent Holdings, which also has a stake in Meituan Dianping. Meituan raised 4 billion US dollars last October from investors.