According to The Seasonal Survey of the China Taxi App Market in Q3, 2014 released by Analysys International, subscribers to taxi apps in China have created 154 million Yuan, and Kuaidi and Didi rank the first and second among China taxi Apps with market shares of 54.4 percent and 44.9 percent. In addition, the service of Kuaidi has covered 358 cities and Didi has covered 300 cities by the third quarter of this year.

Compared to the data released by Analysys International in Q2, 2014, the per capita number of startups of the two taxi apps has increased. Improvements in customer retention for apps show that the way to develop the market is with subsidies for passengers and drivers. The per capita number of startups of Kuaidi is 15.82 times. Compared to Didi’s 12.55 times, this shows that Kuaidi has a certain advantage in customer retention.

Analysys found that increased user retention proves that exploring new purposes for taxi app vendors has effectively improved the participation of users. In terms of marketing, Kuaidi and Didi used new media channels to give benefits to and attract new users while consolidate an existing user base. In terms of operation, they all enriched their services. For example, Kuaidi launched Shuttle Service One for the upscale business demographic in July and at this stage this service has covered more than 50 cities. Didi also introduced Didi Shuttle Service in August. In terms of exploring patterns, taxi apps have started to explore O2O mode through the establishment of Points Reward and cooperation with many businesses. By these measures, taxi apps can effectively guarantee user retention and further achieve cash flow.

Analysys International holds that the rapid growth of users also makes taxi apps getting an entrance qualification but the service that was able to provide users is single. So taxi apps should consider exploring the following two possibilities to address the core issues of their development.

First, taxi apps should build an integrated platform for taxi services and effectively integrate existing vehicle resources of the city.

Taxi apps focus on urban car services, but the model of urban car services can also be used to explore multiple other areas and provide more viable options for users. The shuttle service that has launched is one such exploration for diverse services. Actually, the development of taxi apps is an exploration of the ecological chain in a city, online cars rental, car-pooling and car appointments are the layout of the city business. Users’ demand for diverse segments is large, but it is difficult to effectively meet their needs at this stage. Car Rental apps can extend to those segments of service. Recently, Kuaidi announced that eHi Car Services has taken part in its B round of financing.  eHi Car Services is mainly a car rental service, so it is expected that the vehicle resources of eHi Car Services can balance with Kuaidi and Shuttle Service One. This will provide a wider range of services coverage for Kuaidi.

Second, taxi apps should use more influential related platform to penetrate their own business.

For taxi apps, users have stronger demand for taking taxis in places other than their hometown.  Apps are expected to gain a better conversion rates when services are built on other platforms like those focused on tourism and public transport. For example, Kuaidi has reached a strategic agreement with Air China and High-Speed Rail Steward to build their own services through other types of travel apps. It will help taxi apps play a better role across cities and effectively solve users’ difficulty using cars during travel. Additionally, taxi apps can also cooperate with life-service platforms to provide coupons for certain destination, discount cards, and other ways to attract consumers while expanding their influence. It is also a way to achieve commercialization.