It looks like hailing a cab on a smartphone isn’t as popular as it used to be in China. Daily active usage of ride-hailing apps have dropped five quarters in a row, according to a Sanford C. Bernstein & Co report cited by Bloomberg.
In the past 12 months, market leader Didi Chuxing saw rider usage drop 5%. Analysts added that driver usage slid even more by 23%, likely because ride-hailing platforms are paying drivers less than before. With fewer drivers, users might have to wait longer to find a ride.
In an online Q&A session earlier this year, a Didi executive explained why it was still struggling to make a profit. For every ride, the private company was said to be shelling out the equivalent of 2% of the fare from its own pocket. At the time, the company said it was working to vigorously reduce expenses.