eMarketer expects sector growth to level off amid tighter regulations
London, 10 January 2018: Well over one-third of Internet users in China will use a ride-sharing service in 2018, according to eMarketer’s first-ever forecast on the transportation sharing economy for the country.
In China’s sprawling urban centers where personal car ownership is relatively low, affordable on-demand ride services such as Didi Chuxing and Dida Pinche have become increasingly popular. Ride-sharing companies first entered the Chinese market in 2014, and for the first couple of years rapidly grew their user base.
However, eMarketer expects growth to taper off this year, as the Chinese government has imposed stiff regulations on drivers and vehicles operating within the ride-sharing market. As a result, eMarketer expects 38% of Internet users to use the service come 2019.
“Though partly attributable to lavish subsidies doled out to attract passengers, the inability of public transport infrastructure to keep pace with the rapid urban migration and…