Rival apps Uber and Didi Kuaidi (now Didi Chuxing) may finally have a reason to cooperate – or at least team up against a third competitor.
Last week, transport authorities in Guangzhou purchased car-hailing app Ru Yue (如约) from a state-owned subsidiary to contend in the increasingly fierce market.
Though its English name is 'Real Car,' Ru Yue means ‘right on schedule’ in Chinese and has already attracted over 40,000 users and 660 licensed vehicles managed by four local taxi companies.
Unlike drivers at Didi Kuaidi and Uber, all Ru Yue cabbies must be veteran shifus with experience at a local taxi company and be approved by the government before hitting the road.
Guangzhou authorities spent over RMB1.35 million (USD207,000) to purchase the app in an effort to squeeze out ‘illegal’ companies like Uber and Didi, according to the South China Morning Post.
The purchase may also be in response to volatile protests led by cab drivers in Guangzhou last year, who claimed private car-haling apps were encroaching on their business.
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Although it boasts completely legal services and veteran cabbies, Ru Yue charges more than traditional taxis, which many locals find hard to accept. The Ru Yue meter starts at RMB18, with an additional RMB2.7 charged per kilometer. In comparison, a regular Guangzhou taxi is set at RMB10 and charges RMB2.4 per kilometer.
“I don’t see any incentive to use an app that is run by taxi companies and charges me high fees,” said He Zhijian, a citizen who frequently uses Uber and Didi, in an interview with South China Morning Post.
During its initial release, however, Ru Yue claims it will offer a 50 percent discount on all rides, making it the cheapest option by a long shot.
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