Passengers, cabbies hail mobile taxi apps

The new use of mobile apps for calling taxis in some big Chinese cities could help cabdrivers increase their income while providing greater convenience to passengers.

A few clicks on a computer or smartphone using the free app called Didi Taxi could ease the vexation of long waits by the roadside or stressful waving to hail a cab in rush hour.

When a customer selects "call a cab now" on the app, any driver of a nearby taxi equipped with the same software can answer the passenger's call and arrive quickly on the scene.

In an online discussion, one user recalled that when she first booked a cab using the Didi Taxi app, a driver answered in just five seconds.

But in peak periods or places, users have to bid for a taxi by offering tips, usually ranging from 5 to 30 yuan.

Many clients say they are willing to pay extra for a cab if it arrives quickly.

One Beijing taxi driver told China Daily using the app helped him greatly reduce his downtime and increase his daily income by 20 percent.

Official statistics show the app is used in more than 5,000 cabs in Beijing, but the actual number might be much higher.

There are more than 4,000 requests for cabs on average every day through the system. Some 70 percent of them lead to deals.

Besides Beijing, Didi Taxi is also used in Guangzhou and Shenzhen and will be rolled out in more cities.

Before the app appeared, the only way to book a taxi was through reservation hotlines, but only a handful of Beijing's 200 taxi companies have them. And the city now has some 70,000 taxis on the road.

The hotlines are often difficult for both taxi drivers and passengers. Customers complain that taxis are not there when they need them, while cabbies say their vacant rate reaches some 30 percent.

But the market numbers are huge. Throughout the year, Beijing's taxis provide 700 million rides, 35 times the city's population.

Earning too little

Despite the enormous demand and the needed service they provide, many taxi drivers struggle to make a living.

Local newspapers report that a Beijing taxi driver pays an average of 5,157 yuan a month to lease a cab from the company. After also paying for fuel and maintenance, the monthly cost is about 9,000 yuan.

"Every day when I wake up, I feel I owe someone 300 yuan," said a Beijing taxi driver surnamed Zhang. He added that 4,000 yuan is the most he can earn in a month.

Compared with other large cities in the world, Beijing's taxi fees are low. For a decade, the minimum charge has remained 10 yuan while fuel prices have more than doubled from 3 yuan a liter to 8 yuan.

As a result, many drivers have become picky of their routes and passengers. Some would rather take break during most of the day and then work in high-demand areas during rush hour to avoid driving around the city empty much of the time but still consuming fuel.

Not in a strong position to bargain with taxi companies on fees and facing rising fuel prices, many are turning to new mobile apps to improve efficiency.

And taxi companies are willing to develop and use the software rather than lower charges to cab drivers.

Shanghai's Dazhong Transportation Group is now using a mobile reservation system it developed. It charges 4 yuan for each deal.

Such software is already popular in other countries. Uber, a similar app, has a wide user group in the US.

Although both Beijing drivers and passengers applaud the development, there are some concerns.

Drivers who offer illegal passenger services can also use the apps, resulting in unfair competition between taxis and fake cabs.

Some consumers are concerned that the promise of a big tip during rush hour may cause a host of drivers using the app to descend on the same fare while neglecting others, which could also worsen traffic congestion.

"A 10-yuan tip does not work in rush hour, but if I offer 20 yuan extra in a bid on the app, there is always a driver contacting me in no more than 30 seconds," said one Didi Taxi user in an online forum.

xuxiao@chinadaily.com.cn