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Didi Kuaidi System to Suggest Price Premium Needed to Attract a Car

Tencent Tech, 8/11/15

A spokesperson for Chinese mobile taxi booking and car hire app operator Didi Kuaidi recently stated that the company plans to bring a "dynamic price adjustment system" online. The system will count the number of vehicles and taxi requests in a user's vicinity, and combine this data with the user's order content to predict the likelihood that the order will be met.

If the probability is low, the system will consider factors such as the real-time vehicle count and the weather to recommend that the customer pay a certain additional amount to the driver, to increase the chances of a successful transaction. Currently, the system is still undergoing testing and improvement. The company expects it to see heaviest use when the weather is poor or vehicle use is at a peak, and in locations where supply and demand are unbalanced.

Editor's Note: Local transportation authorities in China have previously, on several occasions, issued requirements that taxi-booking apps remove tipping functions, but so far these rules have been unevenly enforced. For more background on this topic, please see "Beijing-sanctioned Mobile Taxi Apps Delete Tipping Features," MD 11/11/13 issue, "Didi Dache, Kuaidi Dache to Join Shanghai Unified Taxi Dispatch Platform," 2/14/14 issue, and "Shanghai Tightens Regulations on Taxi Apps," MD 9/19/14 issue.

Keywords: wireless Didi Kuaidi car hire app mobile application taxi booking app

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