Driver vacancy rate reaches 50% Many places have suspended the acceptance of new applications for online car-hailing transportation licenses

Driver vacancy rate is 50%, and some places are not accepting new applications for online car-hailing licenses

【PhoneAuto News】In recent years, due to the convenience of ride-hailing services, many people have chosen to use ride-hailing as their daily means of transportation, which has led to the rapid development of the domestic ride-hailing market. However, in recent times, many places have temporarily suspended the acceptance of new ride-hailing transportation certificates, which is related to the increasingly saturated market environment.

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On June 6th, a ride-hailing driver named Chen from Foshan told a reporter from First Financial Daily that he currently earns about 400 to 500 yuan per day by renting a car to pick up ride-hailing passengers, but the number of orders is not regular. In addition, Chen rests for 4 to 5 days each month. Aside from rental and fuel expenses, Chen’s monthly income is around 6,000 yuan.

Chen said, “This is the average income level in Foshan. It depends mainly on the amount of time each person spends driving. The more you work, the more you earn.” Chen seemed anxious about issues related to taking orders and income because the number of ride-hailing drivers is increasing. Chen said that since more drivers joined after the epidemic, it has become more difficult to get orders, and his daily empty car rate is currently around 50%. In response, Chen said, “Now drivers are extending their working hours to make a living. What used to take only 10 hours to earn in revenue now requires at least 14 hours.” A ride-hailing driver in Guangzhou also told reporters that the current empty car rate has indeed increased compared to before.

In terms of regulation, many places have recently introduced policies to cool down the ride-hailing market. On May 15th, the Changsha Transportation Bureau issued a notice stating that the city will suspend the acceptance of new ride-hailing transportation certificates from May 16, 2023. Those that have already been accepted will be processed according to normal procedures. On May 4th, the Sanya Transportation Bureau issued a notice stating that in order to further maintain market order in the ride-hailing industry, protect the legitimate rights and interests of passengers and other operators, and after research, it has been decided to temporarily suspend the acceptance of ride-hailing business licenses and transportation certificate issuance. Cities such as Zhuhai, Jinan, and Suining have also issued risk warnings for the ride-hailing industry.

The director of the Automotive Industry Innovation Research Center at North China University of Technology, Ji Xuehong, stated that the ride-hailing industry was previously a rapidly developing industry, and during the rapid growth period, driver income was relatively high. After years of development, the industry has transitioned from a period of rapid growth to a stable period, and in some places, it has even entered a saturation period. Once it enters a saturation period, driver income and industry attractiveness will decrease.

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