Taxi Industry Revenue Hit Hard by Car Hailing Apps

Taxi Industry Revenue Hit Hard by Car Hailing AppsAs the growing popularity of car hailing apps like Uber are dominating the market the taxi industry in Shenzhen is taking a big hit. Recently a press conference was held by several taxi companies in Shenzhen showing that the daily income of an average taxi driver has decreased by 123 yuan on average and monthly revenue down to 4,500 from 6,000 yuan before.

Drivers especially those taking on the night shift are leaving the taxi industry as its becoming difficult to make a living driving taxis. Xihu and Zhongnan taxi companies had more than 30 drivers returning their taxis and resigning. Members from eight local taxi companies are calling for measures to regulate the market and to protect the rights of taxi drivers. These eight companies have almost 7,000 taxis of half of the city’s total

Competition with various car hailing software companies hit directly the taxi industry. The rent for a taxi in Shenzhen is around 11,743 yuan a month, now a nightshift driver can drive with passengers for around 100 kilometers every night would earn 300 yuan if based on a 3 yuan per kilometer. But since night shift drivers are required to pay rent of 270 yuan plus pay for their own gas earning is almost impossible. The situation gets worse as many private drivers used their cars at nigh to earn extra money.

The taxi industry gave out data showed that that daily revenue of red taxis that services central Shenzhen was around 1,334 yuan in April but dropped to 1,211 yuan this May. Taxis companies even lowered the threshold for hiring new drivers as is more difficult to hire especially drivers for the night shifts.

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