Uber's China Rival Says Cash Burn Has Slowed With Lower Payouts
- Didi Kuaidi says its taxi-hailing service almost at breakeven
- Proposed ride-booking rules won't affect company's strategy
Despite Didi Kuaidi publicly expressing its concern that the rules would force part-time or freelance drivers to exit the industry, the company’s overall strategy to create jobs and help commuters lower the costs of traveling remains unchanged.
Source: AFP via Getty ImagesDidi Kuaidi, the ride-hailing service competing in China with Uber Technologies Inc., said it has slashed the subsidies it pays out to drivers and riders since the middle of this year, reducing its cash burn as the rising number of orders reduce the need for enticements.
The level of financial incentives last month were about a third of the level in June and July, Stephen Zhu, vice president of strategy and head of taxi services at Didi Kuaidi, said in an interview in Beijing on Tuesday. Some of its services like taxi-hailing are close to breaking even, he said.