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Growth in ride-sharing expected to taper off in China

In China’s sprawling urban centers where personal car ownership is relatively low, affordable on-demand ride services such as Didi Chuxing and Dida Pinche have become increasingly popular. Ride-sharing companies first entered the Chinese market in 2014, and for the first couple of years rapidly grew their user base.

According to eMarketer’s forecast on the transportation sharing economy for the country, which analyses a series of quantitative and qualitative data from research firms, government agencies, media firms and public companies, plus interviews with executives at publishers, ad buyers and agencies, well over one-third of Internet users in China will use a ride-sharing service in 2018.

Over one-third of Internet users in China will use a ride-sharing service in 2018.

However, the firm also expects growth to taper off this year, as the Chinese government has imposed stiff regulations on drivers and vehicles operating within the ride-sharing market.

Yet the impact is thought not an immediate one, and the firm expects 38% of Internet users to use the service come 2019, still a significant number.

“Though partly attributable to lavish subsidies doled out to attract passengers, the inability of public transport infrastructure to keep pace with the rapid urban migration and a general enthusiasm for new technology has helped to popularise transport sharing in China,” said Shelleen Shum, eMarketer’s senior forecasting analyst.

“Despite recent attempts by the government to regulate ride sharing in China, we expect demand for transport sharing services to continue to grow.”

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