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The Market is Expected to Grow at a CAGR of 5.8% and Surpass Revenue of Approximately $303.66 Billion in 2025
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The Chinese eHailing market is expected to witness a positive growth at a compound annual growth rate (CAGR) of 5.8% from 2018 to 2025. The revenue of eHailing market is expected to increase from $205.23 billion in 2018 to $303.66 billion in 2025. Private hire eHailing market revenue held 55.4% share, whereas public taxi eHailing accounted for 44.6% in 2018. In the same year, total eHailing vehicles reached 3.9 million units in China. The Chinese eHailing market is highly concentrated and well structured. DiDi Chuxing Technology Co., Ltd. is the top leader in the market. In 2018, DiDi held 92.5% and 88.7% share in the public taxi eHailing and private hire eHailing segments, respectively. DiDi offers competitive fare, large geographical coverage, and high insurance compensation amount to eHailing passengers. DiDi takes high commission charge from its eHailing drivers. However, DiDi provides incentive reward to its eHailing drivers once completing sales order achievement. Commission base per ride service is the main revenue generator of the eHailing company. For instance, business-to-consumer (B2C) public taxi eHailing service commission ranges from 15% to 40% in China. In terms of private hire eHailing, B2C and consumer-to-consumer (C2C) services charged a commission ranging from 20% to 30%, whereas business-to-business (B2B) perspective took 30% to 45% of commission per service in China. The penetration of electric vehicle will be increased in the Chinese eHailing market, especially in the public taxi eHailing segment. To fulfill the Chinese Government’s vision in green environmental development, automotive original equipment manufacturers (OEMs) are aimed to expand their sales in eHailing perspective. Autonomous driving technology will be implemented in the Chinese eHailing market during the long term. The involvement of Baidu Inc. in level 3 autonomous driving technology will be significantly bringing positive market impact across automotive OEMs and eHailing companies in China.The research discusses the government regulations in the eHailing market, market overview, eHailing market analysis in China, profiles of key eHailing companies, and growth opportunities. The study ends with conclusions and future outlook.
The aim of this study is to evaluate the eHailing market in China. The business segments include public taxi eHailing and private hire eHailing services. The study analyzes the competitive strategy and partnership of eHailing market within the automotive industry in China. It also discusses the key eHailing companies in China.
Key Issues Addressed
Author: Ming Lih Chan
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