People who book cabs through the Kuaidi and Didi taxi mobile phone applications will from today no longer receive cash rewards, the two companies said yesterday.
Taxi drivers will, however, continue to be paid 3 yuan (48 US cents) for each fare they take through the apps, up to a maximum of 10 per day.
Backed by technology giants Alibaba and Tencent, the two companies have been locked in a four-month battle for market supremacy by offering financial incentives to passengers and cabbies who use their apps and the associated online payment platforms.
Despite the withdrawal of the bonuses, Kuaidi says it will introduce a range of new offers soon. Didi says it too is considering alternative schemes.
"Together with Tencent, we have invested more than 1 billion yuan in promoting the use of mobile devices among drivers and passengers," said Wu Rui, marketing director of Didi Taxi.
"Taxi drivers are hard workers and they deserve higher wages to encourage them to provide a better service. We will continue to reward them," he said.
Didi began paying subsidies to users of its software on January 10, and since then has attracted more than 100 million users across the country, Wu said.
Alibaba-backed Kuaidi Taxi introduced a similar scheme on January 20. Over the following weeks and months, the two companies steadily increased the size of the bonuses on offer, before gradually reducing them from last month.
Habit forming
Though there are no longer cash incentives available to passengers, at least one person will continue to use the booking apps.
"I don't think it will make much difference. We all knew the subsidies would come to an end. It was just a matter of time," Shanghai woman Zhao Ying said.
"People who got into the habit of using the apps to book cabs will likely continue to use them," she said.
Zhang Jian, a cabbie with Shanghai Haibo Taxi Co, agreed.
"I get about a third of my business through the two apps. They've improved my efficiency by reducing the amount of time I waste driving around looking for a fare," he said.
"I'll definitely continue to use them, and so will lots of my colleagues," he added.
