RideHailing App Vehicles Abandoned in China

first_img U.S. Army To Test Remote-Controlled Combat VehiclesDomino’s Brings Autonomous Pizza Delivery to Houston Stay on target Is this where good cars go to die? As China’s ride-hailing apps and companies grapple with a safety crisis and slowing growth, photos emerge of more than a thousand vehicles abandoned in an industrial park, most of them still new.The abandoned vehicles are located in Nanjing, in the Jiangsu province of China.View of abandoned ride-hailing app vehicles in Nanjing, China on November 1, 2018. (Photo Credit: VCG/VCG via Getty Images)Earlier this year, Nanjing became the first city in China to put a temporary cap on the number of vehicles that can be hailed online and via apps, as reported by Jiemian (in Chinese). By controlling the issuance of new licenses for ride-hailing vehicles and taxis, the city was hoping to regulate the sector, curb illegal practices, and reduce safety risks.In September, Meituan Dianping, operator of the world’s largest on-demand food delivery service, announced that it was halting further expansion into China’s ride-hailing market. The Beijing-based company started its pilot ride-hailing operations in Shanghai and Nanjing earlier this year, and was expected to compete with the country’s industry leader, Didi Chuxing.The change in strategy for Meituan came after the deaths of two young women passengers on Didi’s carpool-like Hitch service within the space of three months, according to the South China Morning Post.The deaths also prompted China to conduct comprehensive inspections on all ride-haling service companies, according to Reuters. The inspections started in September.Abandoned ride-hailing app vehicles in Nanjing, China on October 31, 2018. (Photo Credit: VCG/VCG via Getty Images)Even with the crises the, ride-hailing industry in China is already worth $30 billion, more than the rest of the world combined, according to a report from consulting firm Bain & Company released in May this year. And it could more than double in size to reach $72 billion by 2020.But fierce competition — aside from big players Didi and Meituan Dianping, third-party apps such as WeChat and Alipay offer ride-hailing services — is likely to allow only a small number of companies to survive.“We’re seeing a lot of acquisition and consolidation,” Raymond Tsang, one of the authors of the Bain & Company report, told CNN Business. “And profitability among these players has not been very high, to say the least.”More on Geek.com:Uber, Lyft Help Voters Get to the Polls on Election DayWaymo, GM Lead Self-Driving Car RaceToyota’s e-Palette Mobile Retail Space Expected in 2020last_img

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