China Internet Watch https://www.chinainternetwatch.com China Internet Stats, Trends, Insights Sun, 03 May 2020 07:56:48 +0000 en-US hourly 1 https://www.chinainternetwatch.com/wp-content/uploads/cropped-ciw-logo-2019-v1b-80x80.png China Internet Watch https://www.chinainternetwatch.com 32 32 Didi the local car-hailing app is the biggest rival of Uber in China https://www.chinainternetwatch.com/17996/didi-car-hailing-app-rival-uber/ https://www.chinainternetwatch.com/17996/didi-car-hailing-app-rival-uber/#respond Tue, 21 Jun 2016 03:00:54 +0000 http://www.chinainternetwatch.com/?p=17996 didi-taxi

Car-hailing apps have over 60% penetration rate across all city tiers and age groups in China. 84.7% users from China’s first-tier cities  use car-hailing services; and, they used car-hailing apps 8.7 times on average in the past month according to an FT research.

Over 80% users in 25 to 29 age group use car-hailing apps, and they used it as frequently as 9.1 times in the past month according to FT Confidential Research.

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Users’ average monthly spend on car-hailing apps is RMB 181. Users whose annual income is at least RMB 300k use car-hailing apps most, 12.5 times on average in the past month, followed by RMB 100k to 299k income group (7.9 times) and RMB 99k or below (6.6 times).

Didi and Uber are two major car-hailing apps in China. 91.3% respondents listed Didi as top 3 car-hailing apps used while only 35% voted for Uber.

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Didi ranked top among five most popular car-hailing apps which are Didi Chuxing, Uber, UCAR, Dida Pinche, and Yongche.com.

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Didi Zhuanche, private car service by didi, costs lower than UberX, similar service by Uber.

A common tactic adopted by many internet companies in China is to provide subsidies. Didi announced a total number of 1.43 billion orders in 2015 including taxi, private car, carpooling, bus, test drive, corporate service and other services. And, the total number of registered Didi users had reached 250 million by the end of 2015.

Extended reading: Uber’s battle for China (FT.com)

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China’s Mobile Car Calling Market from 2014 to 2015 https://www.chinainternetwatch.com/13899/research-chinas-mobile-car-calling-market-2014-2015/ https://www.chinainternetwatch.com/13899/research-chinas-mobile-car-calling-market-2014-2015/#comments Thu, 30 Jul 2015 03:00:21 +0000 http://www.chinainternetwatch.com/?p=13899 car renting

Kuaidi and Didi mobile car calling apps still rank first in China’s car calling market by usage rate according to iiMedia Research. Carpooling will become the next focus of competitions in China’s car calling market.

China Mobile Users’ Transportation Choice on the Way to Work in Tier-1, Tier-2 Cities

Public transportation is primary transportation in China’s first-tier and second-tier cities when mobile phone users go to work, which accounts for 42.8%. Public transportation system in first and second-tier cities is more sophisticated and less expensive, thus it is the main means to go to work among most mobile phone users.

China Mobile Phone Users’ Brand Awareness of Mobile Car Calling Apps

Brand awareness of Kuaidi ONE and Didi cars lead the market, but China’s mobile phone users’ overall awareness of the car calling mobile commerce has room for improvement. Uber ranks next to Kuaidi and Didi, accounting for 13.0%.

China Car Calling Apps Market Share by Usage in 2014
Nearly 20% Chinese mobile phone users surveyed used car calling mobile business app, and we can see that mobile car calling market has been developing gradually. China mobile car calling market began to detonate from the second half of 2014, and developed quickly driven by the capital. Under the background of car-purchasing restriction policy of some second and third-tier cities, China mobile car calling market prospect remains good.

Reasons for Choosing Mobile Car Calling Business Service

45.2% of Chinese mobile phone users used mobile car calling service after receiving promotion offers; and this proportion is far higher than other factors. Now the mobile car calling market is in the early development. Using marketing activities to gain a large number of new users has become a main tactic among car calling app companies.

Average Budget (RMB) of China Mobile Car Calling Apps Users in 2014

In 2014, the budget of 76.9% of Chinese taxi calling app users is under 50 yuan per trip while the budget of 37.7% of car calling applications users is between 50 to 100 yuan. .

Usage of Mobile Taxi Calling Apps Users

Users’ application usage scenarios distribution is relatively balanced. Taxi applications are a kind of high-frequency and broad-coverage applications, with a strong adhesive feature; once able to live with local travel information and users’ data, it will become the main way of O2O marketing in the future.

Usage Frequency of Mobile Car Calling Apps by Local Car Supervisory Policy in 2014

Although 37.1% users who used the mobile car application understood that the government took appropriate regulatory governance policies for mobile car market, the usage frequency has not changed much; 34.4% usage frequency decreased slightly. But overall, the appropriate government regulation of car calling mobile apps had little impact on the users’ intention to keep using this type of apps.

Usage of Mobile Taxi Calling Apps in 2014

Usage of China Mobile Car Calling Apps in 2014

At the end of 2014, taxi calling apps were the used most frequently, accounting for 43.2%; and 30.5% used them often. The usage of business car calling apps increased slightly, accounting for 15.6%.

Usage of Mobile Car Calling Apps in 2014

In 2015,  taxi calling, private car calling,  carpooling, car sharing and other sharing models will accumulate a large number of passengers’ locations, transport routes, usage time and other data on those mobile platforms. These data could go through deep integration with local life services after collated and excavated, and could form a marketing system with passenger routes.

After taxi and car, carpooling will be the next main battlefield of car calling applications. Although some of the participants entered the market, the market potential has not been fully tapped. After the merge of Kuaidi and Didi, they can expand their business lines and integrate existing resources. The carpooling market trends to bring into another wave of marketing craze in the next period.

Also read: Baidu’s Global Market Share Decreased to 7.52% in June 2015

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Uber China Valued Over $6 Billion in July 2015 https://www.chinainternetwatch.com/13870/uber-china-valuation-july-2015/ https://www.chinainternetwatch.com/13870/uber-china-valuation-july-2015/#comments Wed, 29 Jul 2015 03:00:05 +0000 http://www.chinainternetwatch.com/?p=13870 uber

According to Leiphone.com, Uber China recently launched a second round of financing; the company’s valuation is between US$6 billion and US$7 billion in July 2015.

Since entering the Chinese market, Uber China has been developing very rapidly. The growth rate in the Chinese market is far higher than the global average level. Uber currently planned to expand Chinese markets before the end of the year to 40 cities across China; and 100 cities by the end of next year. In addition, Leiphone once reported that Uber may set up a new company in China to achieve better development.

Uber’s transaction in China is expected to reach one third of last year’s total. However, problems such as huge losses, excessive car fare subsidies, scalping, fraud transaction, too much reliance on low-cost marketing, loose verification of the driver and vehicle, and so on, are all existing problems of Uber; in addition, policy changes in each city may also bring Uber China a lot of unknown risks.

And what’s more, the emerging and flourishing of some domestic automobile software in China has, to some extent, blocked the Uber’s development in China, for example, Didi and Kuaidi, and it may face more fierce competition in the future.

The stated problems make many investors have to think about Uber China’s valuation, however, Uber CEO once said that Uber still needed a lot of money to invest into; and, the next three years would have US$1 billion invested in the Chinese market. It would not expect to break even until 2018.

Uber has about 250 markets all over the world, and the total transaction value in global market reached US $3 billion last year. In March 2015 Uber purchased deCarta, a map pioneering company with only 40 staffs. It actively invested in the research and development of new technology.

Also read: 50% China Users Keep Taxi App at the End of Subsidies

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Over 200K Taobao Fraud Transaction Accounts Targeting Uber https://www.chinainternetwatch.com/13562/over-200k-taobao-fraud-transaction-accounts-targeting-uber/ https://www.chinainternetwatch.com/13562/over-200k-taobao-fraud-transaction-accounts-targeting-uber/#comments Thu, 02 Jul 2015 12:00:07 +0000 http://www.chinainternetwatch.com/?p=13562 uber

In the costly-spending O2O field, almost all firms have a grievous history of fraud transactions and anti-fraud transactions. Uber, Didi, and other vehicle calling services have become the trades favoured by many over the past two years, due to their high-profile spending of scores of millions US dollars every day.

The forms of fraud transactions by Uber, Didi, Kuaidi One and other apps are not so much differentiated. But Uber gives the highest subsidies. So both Uber and his counterparts are fraud transactions on Uber; they also persuade “customers” to click farm on Uber. Only when Didi gives the higher subsidy or during the rush hours will he gets part-timing for it.

This also evidences the recent challenges against Uber’s daily order quantity in China. Travis Kalanick, CEO of Uber, says that the daily order quantity in China is close to 1 million, but the overseas media repeatedly challenge the fake prosperity formed due to Uber’s fake orders.

According to investigations, Uber has gone too far in click farm. The single outlet of Taobao has traded 200,000 Uber passenger accounts. As Taobao orders are mostly made by small and loosely-distributed users, a greater number of users in groups make the deal by making phone calls or QQ messaging. The total fake orders by fraud transactions will be presumably up to 1 million in scale.

Disordered Fraud transactions by Uber

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“Get 70 orders a week, and you will earn a bottom line of RMB 7,000. With additional subsidy to new car owners, you can get an easy payment of more than RMB 30,000 a month. ” From this April on, Uber has subsidized car owners to such an extent as even stunning the Chinese costly-spending patriarch Didi.

Originally a clerk working for a small firm, Chauffeur Mr. Li found that Uber would earn him an income more than his salary on a monthly basis. Uber as a platform have gathered many chauffeurs like Mr. Li. The high subsidy and low rate helps Uber gain a great success in spite of his much backwardness compared to Didi in the Chinese market.

While a large swarm of car owners are scrambling for Uber, Uber also faces up with lots of click farmers. The media tried to search Tabao.com for the two key words: “Uber” and “优步(Uber in Chinese), finding that the results were all about account trading and fraud transactions. There were more than 200 Taobao links about trading of passenger and chauffeur accounts. Among these links, the firstly appearing ones had a trading volume of RMB 14,000 or so. Most Taobao shops provide a Uber QQ chat platform group.

A reporter from the media bought an inactivated Uber passenger account from the Taobao shops “Uber Home of Car Owners” and “Fish Little Store”, respectively. The shops provided a complete package of information including Uber and Alipay accounts, and mobile verification code, with one click farmer’s textbook as a compliment.

An inactivated Uber account is considered as essential to fraud transactions. Because it contains no record of car use, one can get a new passenger voucher worth RMB 30. In fraud transactions, if the fare is around RMB 30, you can get Uber’s subsidy at almost zero cost. Take Beijing for example, where the subsidy during rush hours will be 2.5 folds of the normal one. In that case, you can earn RMB 100 per order.

“Quite a number of users buy 100 or even 500 Uber accounts in one lot. Some users also ask if they can buy account automatic generators. But this can easily cause ‘poisonous needles’. There are also some cheaper accounts for sale in Taobao.com, but note that some are deactivated accounts that are possibly being frozen”, a customer service clerk from “Uber Home of Car Owners” tells the journalists. The clerk repeatedly tells the journalists that one cannot use the same account to farm click on the same chauffeur’s service twice, and the optimal number of farm clicks is expected to be less than 10.

Even if each account gives 5 farm clicks, “Uber Home of Car Owners” has produced 50,000 farm clicks alone. In Taobao platform, there are at least 15 shops with equivalent trade volumes. Conservatively speaking, there are more than 200,000 Uber accounts sold by Taobao shops for fraud transactions purposes. Some shops even announce that big volume buyers can befriend their QQ or WeChat accounts. It means that some large orders avert Taobao system’s governance and reach a deal by other means.

Diversified means of fraud transactions

QQ Group (group chat account) is a converging place of click farm information. There are scores of QQ Groups directly named after “Uber” or “Didi click farm”, yet differentiated by the prefix – name of a city. Such exclusive QQ Groups are accessible in Beijing, Hangzhou, Wuhan and Nanjing and other cities. Each of the QQ Groups named after “China” or “National” gather nearly 2,000 click farmers.

The perpetual topics dominating these QQ Groups include “Ask for needling (means fraud transactions)”, “Ask for nurse (means click farmer)”, “numerous mobile numbers for sale”, “sell inactivated passenger account, inactivated and much-used chauffeur accounts” and “click farm textbook, no risks” and other click farm tips. There are also discussions on the teaching of skills and the best fraud transactions.

Although click farms are collectively known “needling”, there are as many methods and tricks as beyond your imagination.

The simplest method is to ask your colleagues or friends to help fraud transactions, which is but an occasional behaviour. If you want to pursue long-term click farm, you need to find a click farm professional. A medium-sized team of click farmers may have more than 30,000 inactivated Uber passenger accounts.

A tailored service chauffeur Mr. Wang tells the media that the professionals will help to click farm in different ways. Some are a team who will send four persons to actually sit in each car, each having many accounts; they have “ups and downs” in sequence over the short distances, and with one day’s work, they can creates the expected number of fraud clicks. Others are teams who have virtual operation devices. They can click farm without taking a car. All they need to know is your car registration number and location. They will locate you and then have a virtual drive to form a like order.

Apart from fraud transactions by professions and non-professionals, self-fraud transactions makes up almost more than half of the trade. Usually, a click farmer will buy a mobile phone with modifiable IEME code or own many ones to log onto many passenger and chauffeur accounts, in order to enable “self-needling”. By this means, some click farmer can earn nearly RMB 20,000 every week.

A bigger surprise is that even if you have no car, you can get Uber’s subsidy by fraud transactions. One solution is to buy chauffeur account and information from QQ Group and Taobao shops. Alternatively, you can ask somebody to apply an account for you, who uses fake driver’s license (retouching by Photoshop) for registration.

Another solution is that some professional will provide one complete package of services. All they need are chauffeur account and password; the remaining jobs are automatically done by the computer, such as virtual positioning, auto-drive for order receipt, and passenger-side auto-ordering.

The bittersweet chauffeur

Chauffeurs hold different attitudes toward fraud transactions. Many a chauffeur says that they have ever click farmed, but for different reasons.

As mentioned above, Mr. Lin is a frequent click farmer, who tells the media that fraud transactions can earn you fast money and get things done quickly. On the other hand, he just thinks that his car would have only a service mileage of 100,000 kilometres in two years if the adequate mileage is covered. This is a fast depreciation that is not cost-effective.

Mr. Lin tells the media that there were once many click farmers, and most chauffeurs would do it, Uber couldn’t but let them go unchecked. Now Uber’s rules have changed, and it not worth fraud transactions any longer, especially asking someone to “needle”. That’s why he does it himself now.

Mr. Li and Mr. Wang are chauffeurs who click farm on Uber occasionally, on the similar ground of the increasing quota of tasks for Uber’s subsidy. 85 orders a week means that an Uber chauffeurs has to work six days a week, except the day of non-operation due to vehicle restriction rule, and picks up 15 passengers a days by working 12 hours a day. That’s why they need less burden.

However, some chauffeurs object to the practices of fraud transactions, thinking that their actual painstaking work ends up earning less than those click farmers do. But if an Uber account is frozen due to click farm, it would be better to take the pains of normal work.

They believe that lower-paid as it is, the new subsidy rule can urge them to earn up to RMB 5,000 a week by working harder, a way that is fairer to those who really do.

All Uber chauffeurs, fraud transactions or not, are dissatisfied with the sudden increase in the fraud orders received by mistakes after the enforcement of the new rule of order dispatch. According to the new subsidy rule, if you want a double subsidy, you need both receive the expected number of orders and to execute 60% of them. The cancellation of orders has, however, greatly decreased their number of orders executed.

A war between fraud and anti-fraud

Perhaps, Uber shows both likes and dislikes when being click farmed on. On one hand, fraud transactions means data prosperity in some sense, adding a promoter to their financing campaign. On the other hand, the defrauding of real money from Uber platform lowers the understanding of users’ demand. As for the rampant fraud transactions, Uber is also continuously working out his own anti-fraud rules.

This week, Uber updates his subsidy rules by changing the last week’s minimum subsidy of RMB6,000 for each 85 orders received into the current subsidy being doubled minimum fare. The order dispatch rule also changes from the nearby dispatching to the small-scale random dispatching.

The new rules bring greater “needling” difficulty. The orders of a click farmer can be easily dispatched to non-click farm chauffeurs, and many cancellations may lead to the account freezing by Uber system. The introduction of the new subsidy rule disables the quantity-based fraud transactions, because the specified quantity of orders, if not worth much in total, don’t mean higher subsidy.

In addition, the new version of Uber app has toughened the efforts to free fraud accounts. The great number of short-distance orders, virtual operation, two passenger-orders for the same chauffeur and use of one mobile phone for different accounts will easily cause account freezing. Uber usually works by freezing IEME code of a mobile phone. Once IEME code is frozen, any account cannot run in the mobile phone and then get frozen as well.

Uber’s new rules decrease the practices of fraud transactions. On one hand, the difficulty and intensity of earning subsidy is not so much as before. On the other hand, the account freezing is far stricter than ever. But in the field of click farm, there are a ceaseless flow of new comers for the sake of benefits, and veterans and professionals can always find new loopholes and methods against the rules.

For minimum fare, those who commit fraud transactions provide an optimal amount, depending on the fraud transactions of different periods, in order to ensure the maximum earning within the upper limit of subsidy. In response to the new rule of order dispatch, they suggest that chauffeurs click farm in desolate places. The greater intensity of account freezing urges them to quicken the updating of passenger accounts and to sell mobile phones and software with modifiable IEME codes.

Experts tell the media that Uber is fully equipped with anti-fraud technology. But Uber’s data is not big or smart enough. If too strict control is introduced, the unexpected harms will occur, affecting the user experience. What can be done now is find a balance.

Besides, firms find it very difficult to give more punishments to click farmers. The severest form is but account freezing and earning take-back, far from being a real threat.

When interviewed, Zhao Zhanling, a cyber-lawyer, says that click farm is a default of service contract and platforms like Uber can punish click farmers as per the contract. But this doesn’t easily constitute a breach of law. Still, the breach of law is a civil action that cannot be addressed at administrative and criminal levels. It is not a cost-effective choice. So firms seldom turn to law for resort.

The focus of the cat-and-mouse game between fraud transactions and anti-fraud transactions is on subsidy and earning. The competition between firms and the market growing drive determines the prolonged use of subsidy. This guerrilla war-like game will continue as well.

Also read: 50% China Users Keep Taxi App at the End of Subsidies

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50% China Users Keep Taxi App at the End of Subsidies https://www.chinainternetwatch.com/12728/app-subsidies/ https://www.chinainternetwatch.com/12728/app-subsidies/#comments Thu, 19 Mar 2015 00:30:40 +0000 http://www.chinainternetwatch.com/?p=12728 taxi-app-2015

Chinese consumers can save spend when they choose apps that offer subsidies or Hongbao, coupon nowadays. In the internet times, many apps would provide subsidies to acquire users, which further changes people’s lifestyle in China. Tencent carried out a survey about consumers’ long term behavior about apps with subsidies offers and those without subsidies. 50% of respondents will keep taxi app after it stopped offering subsidies in China.

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As of 30 September 2014, the number of China taxi app users was 154 million. Didi Taix app’s users exceeded 100 million in 2014. The total subsidies were over RMB1.4 billion(US$227.08 million). Besides, during double 12 (12 December), Didi Taxi app offered RMB130 million and Kuaidi Taxi app poffered RMB180 million in subsidies. At present, the research shows taxi app is the most used app with subsidies.

Take-out apps accounted for 20.8% of all the apps with subsidies in 2015. The competition among take-out apps started in the second half of 2014. The most users were students from colleges according to Tencent’s research in 2014.

Movie apps ranked third by use frequency. Such apps provide special price of movie tickets during special periods to attract consumers in China.

Only 7.6% respondents use special vehicle apps. They can provide 20 yuan or 50 yuan in a single trade while the number of such app users is not so big.

专车应用虽然单笔补贴力度都比较大,比如单笔补贴20元、甚至单笔50元的优惠券等活动都比较普遍,可用户使用的次数却比较低,仅7.6%的用户表示经常使用专车应用补贴。家政类服务的补贴使用次数最低,为4.3%。

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40.8% respondents know apps with subsidies from friends’ shared news. Major apps are promoted with subsidies online in 2015.

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Over 80% respondents use apps for getting subsidies in 2015.

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31.2% respondents feel satisfied with apps. Only 16.4% feel not so content with such apps as they use them only to get the subsidies only.

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Nearly 50% respondents will keep the apps after subsidies offer ended.

Also read: Business Car Renting Services’ Potential in China

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China Taxi App Users Exceeded 154 Mln in Q3 2014 https://www.chinainternetwatch.com/10456/taxi-app-users-exceeded-over-150-mln-q3-2014/ https://www.chinainternetwatch.com/10456/taxi-app-users-exceeded-over-150-mln-q3-2014/#comments Mon, 10 Nov 2014 06:00:37 +0000 http://www.chinainternetwatch.com/?p=10456 china-taxi-apps-by-users

As of 30 September 2014, the number of China taxi app users was 154 million. Kuaidi and Didi Dache apps are the two most popular taxi apps in China. Kuaidi had 54.4% market share by total number of users, followed by Didi Dache with 44.9% according to data in report of China taxi app market in Q3 2014 published by EnfoDesk.

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The latest data shows as of 30 September 2014, Kuaidi Taxi covered 358 cities in China and Didi Taxi covered 300 in Q3 2014. Kuaidi and Didi Taxi apps users’ average use frequency both increased in Q3 which indicates that user stickiness of their apps is increasing. Active users’ average use frequency of Kuaidi Taxi app was 15.82 while with Didi Taxi app was 12.55.

Tencent backed Didi Dache and Alibaba backed Kuaidi, started a “bonus” war for obtaining users. The battle heated in February 2014, the giveaway bonus for each customer who used their app to call taxi reached 12 yuan (USD 1.94) on February 18, the highest bonus hit 20 yuan (USD 3.24) for customer and 15 yuan (USD 2.43) per transaction for driver. More here.

Taxi apps now provide single taxi service and such apps should be improved to make their long term development.

  1. There should be a unified platform for China taxi app market to integrate taxi source efficiently in one city. Taxi apps can expand service like online car renting, car sharing and car booking, which can satisfy uses’ large demand in cities now.
  2. Taxi apps should market their service via various social platforms. App users are more dependent on taxi apps when they are in a strange city and it is efficient to market apps on traveling and transportation platforms. Besides, taxi apps can cooperate with local lifestyle service platform to provide discount card and coupon.

eHi and Shenzhou Car Rental Service are two popular car rental service providers in China, see their performance in Q2 2014: China Car Rental Service Performance in Q2 2014: Shenzhen VS eHi

Also read: Business Car Renting Services’ Potential in China

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