Han Ximin ximhan@126.com DIDI Chuxing, the leading app-based taxi service platform in China, set two ceilings on price hikes for its app-based cabs, including Didi Express and Didi Premier, when they are in busy areas with high demand. Under the dynamic fare system, the surcharge of Didi Express will be controlled within 29 yuan (US$4.20) per ride and the premium price is to be no more than 50 percent more than the standard fare. For Didi Premier, the surcharge is controlled within 59 yuan per ride and the premium price is capped within 50 percent of the standard fare, Didi said at a release Wednesday. If a rider takes a Didi Express from Nanshan CBD to Longgang District during a busy time Saturday, the fare of the trip will be 100 yuan. Under the dynamic fare mechanism, the premium price was 150 yuan. As the surcharge is controlled within 29 yuan, the rider needs to pay at most 129 yuan for the trip. The dynamic fare mechanism uses price leverage to adjust supply and demand of cab services in some busy areas during rush hour. Didi will calculate a reasonable price based on its data and the real-time traffic situation and send a suggested fare to a rider through its app service platform. It then gives the order to a driver after the driver has confirmed the offer. Based on its data capability, Didi will also establish an alarm system to predict the areas and time periods in which the dynamic fare mechanism will be applied. In some extreme conditions, such as the Spring Festival holiday rush or bad weather, Didi will also create contingency plans for the dynamic fare system to ensure cab supply and the public’s commutes, while reminding riders to plan their trips ahead. The double capping mechanism was introduced to control random price hikes, which drew complaints from riders during the Spring Festival holiday rush. Drivers will also have to consider the costs and benefits of driving into congested areas, or during bad weather conditions, before picking up passengers. Didi said that the public is welcome to give more suggestions to solve difficulties in hailing cabs, and the imbalance between supply and demand. | 