70% of online car Hailing drivers in the national survey report on the survival status of online car Hailing drivers said that the proportion of platform fees was too high From Frost & Sullivan

The following is the 70% of online car Hailing drivers in the national survey report on the survival status of online car Hailing drivers said that the proportion of platform fees was too high From Frost & Sullivan recommended by recordtrend.com. And this article belongs to the classification: Online car Hailing.

Online taxi drivers have been smoking hard for a long time. Recently, frost Sullivan, a well-known market research and consulting organization, released the national survey report on the survival status of online car Hailing drivers (hereinafter referred to as the report). The report shows that reducing the proportion of smoking has become the strongest appeal of drivers, and 70% of online car Hailing drivers said that the proportion of platform fee is too much.

Sullivan: Sullivan

Just last month, the Ministry of transport proposed that “implementing the” Sunshine Action “of the platform enterprises of the new business format of transportation” be one of the practical things closer to the people’s livelihood in 2022. It clearly proposed to urge the major online car Hailing platform companies to disclose the pricing rules to the public, reasonably set the upper limit of the proportion of the platform and publish it publicly, and display the proportion of each order in real time at the driver’s end.

“It is a good thing for the government to pay more attention to dynamic employment and flexible use of workers. Each dynamic employee is very weak and cannot compete with the rules of the platform. The government needs to supervise the platform to prevent exploitation caused by monopoly, but it can’t simply ask commercial companies to change the rules.” Qian Wenying, a researcher at the case center of China Europe International Business School, believes that the “Sunshine Action” needs to be studied by many parties to realize price transparency and a certain degree of fixed commission rate on the basis of ensuring dynamic price allocation.

The “blur” is drawn proportionally

What is the proportion of an online car Hailing order? No one seems to have completely figured it out.

“Three people carpooled and paid a total of 22 yuan, but the driver only received 10 yuan”, “27 yuan for a taxi, 18 yuan for the driver and 9 yuan for the platform. As passengers, they also felt too dark”, “35% for a special car is too high”… A random sampling survey of the payment of different online car Hailing shows that not only the proportion of drivers among different platforms is different, The costs of the same platform vary at different times and in different sections.

“The core business model of online car Hailing is a dynamic pricing system. It is really difficult to form a unified proportion by adjusting the algorithm in real time according to the relationship between market supply and demand.” Qian Wenying said.

In the driver passenger relationship, the income and expenditure of both parties can be simply divided into four parts: Driver basic income, driver reward, passenger expenditure and subsidy received by passengers. Under normal circumstances, what the driver can see in real time is the basic income, and the reward varies according to various rules. For example, some platforms will make a certain cash return according to the amount of orders received in the current month at the end of the month, plus various offset awards, morning and evening peak awards, festival subsidies… The proportion is difficult to be reflected in each order directly and in real time.

According to the reporter of it times, Didi, meituan, Cao Cao travel, Shouqi and other online car Hailing platforms have been implementing the “transparent bill” of drivers since last year.

For example, since August last year, Didi travel has tried to query the “driver income report” with one click in Shenyang, Changchun, Baoding, Qinhuangdao, Anshan, Zibo and Anshun. The report mainly contains three groups of figures. The first group is the proportion of the average income of all orders in the previous day; The second group is the proportion of the average revenue of all orders in the past 7 days; The third group is the proportion of revenue per order in the past 7 days; Cao Cao’s trip lists passenger payment, driver income, driver income proportion, platform pumping proportion and other information. At the same time, the basic information service fee is included in the order income; The Commission proportion of sunshine travel is calculated according to (passenger payment amount – actual income) / actual payment amount.

Source: didi travel

However, what is “transparent” is only the result of the bill. As for the pricing rules and the algorithm rules of floating proportion, they are not disclosed to drivers. “To some extent, this is a trade secret. Once the card is shown, other platforms are likely to deduce its pricing model, so as to make targeted price adjustment.” Qian Wenying believes that in the face of the regulatory requirements of government departments, all platforms are waiting and watching, and no one is willing to be the first “person with a bright card”.

One size fits all “fixed pumping” is not feasible

“I have calculated by myself that if the running water runs to more than 800 yuan every day, the proportion of pumping may be about 10%, but if you only run 500-600 yuan, the proportion of pumping will rise to about 15% On March 3, in the live broadcast of “welcome to the speaker” by Shanghai traffic radio, an online car Hailing driver who has been driving for seven years told the host Ren Zhong. He, who had been a taxi driver for many years, asked whether the online car Hailing platform could also adopt the mode of fixed commission, “for example, 10% per order, and I don’t want any reward.”

It is the mainstream distribution mode of online car Hailing platform to draw a percentage first and then subsidize drivers and passengers through secondary distribution. Didi travel once made a “bonus explanation” in May 2021. In 2020, the driver share of didi online car Hailing accounted for 74.4% of the total passenger payable, and the driver subsidy accounted for 4.7%. Among the remaining 20.9%, 10.9% was passenger subsidy and 6.9% was enterprise operating cost (technology research and development, server, security, customer service, manpower, offline operation, etc.), tax payment and handling fee, 3.1% is the net profit of online car Hailing business.

Source: didi travel

In other words, among the 100 yuan paid by passengers, the driver can get 74.4 yuan on the spot, and then the platform will return 4.7 yuan to the driver and 10.9 yuan to the passengers. Excluding the cost of 6.9 yuan, the platform will make a profit of 3.1 yuan.

“But this is calculated by taking the driver and passengers as two whole. If it is specific to a single order, the calculation formula will be much more complex.” An insider of the travel platform told the reporter that the purpose of the secondary distribution is to encourage drivers to work harder and get better. For example, in rainy and snowy weather, morning and evening peak and holiday travel peak, drivers can be encouraged to take more orders by reward, “If we completely follow ‘equalitarianism’, it means that we lose the flexibility of supply and demand regulation, and it will be more difficult to get a taxi in peak periods and hot spots.”

Qian Wenying also disagrees with the “one size fits all” approach to fixing the commission ratio. She believes that the innovation of the online car Hailing platform is to improve the overall transport capacity efficiency by relying on the dynamic pricing mechanism and dynamically managing the operating drivers (sending tasks, rewards and punishments) through big data empowerment. Equivalent to taxi 2.0, “in the future, the whole business format of traditional taxis will certainly go to dynamic pricing. If online car Hailing also adopts a fixed proportion, I think it is a kind of retrogression”.

Indeed, as early as November 21, 2019, the opinions on deepening road transport price reform issued by the Ministry of transport and the national development and Reform Commission mentioned that the price behavior of online taxi booking should be standardized and the market price should be adjusted for online taxi booking.

Taxi pricing system is also changing. In January this year, the management form of taxi freight rate in Shanghai was adjusted from government pricing to government guidance price, and the mode of “benchmark freight rate ± floating range” was adopted. From 7:00 to 10:00 and from 16:00 to 19:00 on weekdays, qualified urban cruise taxi operators can choose to increase the freight rate by 5%.

It is necessary to establish a “virtual labor union” to speak for drivers

Although the “fixed draw proportion” is not completely suitable for the online car Hailing mode, it does not mean that the draw mode of the platform can not be supervised. The first problem to be solved is who will be the spokesman for the interests of drivers?

In November 2021, the Ministry of transport, together with the Propaganda Department of the CPC Central Committee and other eight departments, issued the opinions on strengthening the protection of the rights and interests of employees in new transportation formats (hereinafter referred to as the opinions), which clearly proposed to give full play to the role of the inter ministerial joint meeting mechanism for collaborative supervision of new transportation formats, It is also required to establish or improve the joint meeting mechanism of multi sectoral collaborative supervision at the provincial and prefecture and municipal levels by the end of 2021, and relevant industry competent departments, trade unions and industry associations should continue to pay attention to the operation of the industry.

However, after searching, the reporter of it times did not see the news of the establishment of similar joint mechanisms in various places through public channels. As for the news of the establishment of online car Hailing Platform Industry Association, online car Hailing driver trade union and other industry organizations, only a few provinces such as Shanxi and Hebei have made public reports.

“The establishment of associations and alliances is not a simple matter,” said the above-mentioned people in the online car Hailing industry. The industry associations belong to social organizations. According to the regulations on the registration and administration of social organizations, the sponsors need to apply to the registration administration authority for registration. At present, there is no national similar organization.

A slightly “tragic” example is the “China taxi industry alliance” jointly established by more than 50 taxi enterprises in China and some regional industry associations, such as mass transportation, Beijing BAIC taxi, Tianjin taxi, Chongqing taxi, Guangzhou Baiyun taxi, Shenzhen West Lake, etc, Over the years, it has continuously proposed to “promote the healthy development of the taxi industry and crack down on illegal online car Hailing operations”, but it was banned as an “illegal social organization” due to non-standard procedures on May 26, 2021.

“At present, the business model of domestic flexible employment platform is essentially to help enterprises without helping workers, but we can’t give up food because of choking and ‘strangle’ commercial companies. Therefore, can we set up ‘virtual trade unions, companies or brokers’ of flexible employees through a new organizational form to help flexible employees compete with the company and platform?” Qian Wenying said.

According to the data, as of January 31, there were 260 licensed online car Hailing platforms in China, and 17 had orders of more than 300000 a month. Since didi entered the “silent period”, the competition of online car Hailing platform has gradually become white hot. In a “Red Sea”, how to promote the implementation of “Sunshine Action” is quite a test for relevant government regulatory departments.

From it times

More reading: didi travel: 2017 female online car Hailing drivers Tsinghua University: according to the survey, online car Hailing drivers work an average of 11 hours a day. Ministry of transport: orders in the online car Hailing industry reached 701.46 million in June 2021, down 12.4% month on month. Information service provider standard ranking research Institute: more than 40% of online car Hailing drivers work more than 12 hours a day. Quest Mobile: 2020 new blue collar crowd insight Report 33.79 million new Internet blue collar people represented by car Hailing drivers, delivery boys, delivery riders, etc! National online car Hailing regulatory information interaction platform: in January 2022, online car Hailing orders decreased by 25 million yuan year-on-year. Didi travel: 2018 Q2 urban traffic travel report Aurora big data: high subsidies have fallen behind for a while. What is the comparison between meituan taxi and didi travel? Aurora big data: May 2018 special car Market Research Report didi travel: 620 million person times of intelligent travel in the Pearl River Delta from January to July 2016 didi travel: the top three didi travel in Beijing, Chengdu and Guangzhou in 2016: the daily order volume of didi exceeded 10 million in March 2016 Tencent Technology: a picture to understand the sphere of influence of the global mobile travel market rethinkx: 2020-2030 transportation CB insights: Valuation trend analysis of 9 top on-demand service start-ups

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