Hyperdrive
China’s Ride-Hailing Decline Hurting Car Sales, Bernstein Says
- Daily usage is down as operators like Didi reduce incentives
- Automakers may sell more cars to their own mobility divisions
This article is for subscribers only.
The use of ride-hailing apps is declining in China as operators scale back incentives for drivers, contributing to the slowdown in car sales in the world’s biggest auto market, according to a Sanford C. Bernstein report.
Total daily active usage across ride-hailing apps in the third quarter fell 6.3% from a year earlier, marking a fifth consecutive quarterly drop, Bernstein said, citing TalkingData figures. Didi Chuxing, which accounted for 93% of total daily active users in the last 12 months, saw rider and driver app usage slide by 5% and 23%, respectively, according to the report.