China’s ride-hailing industry has seen rapid growth since 2015, drawing millions of workers who are looking for flexible job opportunities. By 2024, around 7.5 million licensed ride-hailing drivers were active in the country, making it a popular occupation, alongside delivery riders and couriers.
However, the market is becoming quite overcrowded. In Shenzhen, a report from the transportation bureau on May 25 highlighted that the ride-hailing sector is now saturated, with nearly 395,000 licensed drivers and over 142,000 licensed vehicles as of April 30. Each of these vehicles managed to complete about 13 rides daily in April.
At the same time, drivers are seeing their earnings shrink. In Shenzhen, it’s reported that drivers make around 300 yuan (about $45) per day after working 12-hour shifts, which includes deducting expenses like vehicle rentals and insurance. Many of these drivers also serve as the main wage earners for their families.
To boost their earnings, some drivers are getting creative. They sell items from their cars, including handmade crafts and artwork. In fact, for some, these side businesses bring in more income than driving itself.
Others are looking for unique ways to enhance the passenger experience. One driver installed a karaoke machine and disco ball in their car, allowing passengers to sing and even score their performances for a chance to win a free drink. Another turned their vehicle into a mobile café, offering fresh coffee at affordable prices. Some drivers have added massage seat cushions, offering short trials before charging for longer sessions. In Jiangsu Province, one taxi driver even began offering haircuts for just 8 yuan while waiting for their next passenger.
This trend reflects a concept in China known as “neijuan,” which describes fierce competition that leads to little reward. Under this pressure, some drivers end up accepting low-paying rides in hopes of getting better ones later.
Public reaction to these new developments has been mixed. While some passengers appreciate the extra services, others express concerns about safety and regulations.
Ride-hailing companies typically don’t allow drivers to sell goods during trips, and some drivers have faced penalties after their attempts garnered attention on social media. Selling food, in particular, may require additional permits.
Responses on social media have varied too. Some users raised alarms about safety, especially regarding valuable items like jade, while others found the karaoke rides to be a fun idea. Yet, some remain skeptical, preferring a straightforward and safe ride without extra distractions.
