Commenting on China’s ride-hailing industry hitting saturation point in more cities, SMU Assistant Professor of Strategy & Entrepreneurship (Education) Terence Fan said that despite robust public transport systems in major Chinese cities, ride-hailing boomed in the country because it offered a “reasonable way of life for many ordinary citizens, and made (it much easier for) those wanting to get a ride in fast-growing cities”. However, he pointed out that the economic slowdown since the COVID-19 pandemic and the job situation, which has worsened, have encouraged more people to be ride-hailing drivers and further exacerbated the pay for average drivers.” He said, "Few in the younger generation remember what it’s like for (China’s) economy to grow this slow, or even shrink. Ride-hailing is one of the industries caught in this dynamic. It will take some time to equilibrate.”
