(Yicai Global) March 8 -- Didi Chuxing, China's dominant ride-hailing service provider, has signed a credit information-sharing agreement with the country's top economic planning agency.
Didi Chuxing will cooperate with the Beijing-based National Development and Reform Commission (NDRC) on the project to give effect to state decisions and further enrich credit products and services, Chinanews reported. The two made the announcement yesterday. The project will widen to include other online transport companies.
The Xin Yixing, or New Easy Travel, project seeks to offer more efficient and convenient services to individuals with good credit. Based on a national credit data platform, the parties will share information to jointly reward people with good credit and penalize those without, which is intended to beef up the credit monitoring and early warning system. The NDRC will go all out to support pilot programs and hopes Didi Chuxing will boldly proceed with testing, but also protect data security, said Chen Hongwan, director of the NDRC's finance department.
The lack of a rating system has long hampered the healthy development of China's consumer credit sector. The new system incrementally evolving under official auspices is more comprehensive and includes more data on general 'social behavior,' such as traffic violations, than its foreign counterparts.
For its part, the Beijing-based company will spare no effort to implement the project backed and guided by the NDRC, to perform its corporate social responsibility and facilitate the establishment of the social credit system through these pilot programs, said founder and Chief Executive Cheng Wei.
The national database acts as a hub for public credit information sharing under the aegis of the NDRC and is compiled by the State Information Center, which collects 14 billion pieces of information on natural persons, legal persons and companies across various sectors. This partnership will enable both parties to exchange statistics disclosed on the national platform as well as the data the Xin Yixing project requires.
The project will give credit scores. Those with excellent ratings will enjoy priority in car-hailing, discounts, and be exempted from making security deposits for bike-sharing services through Didi Chuxing's software. The project also aims to create new-style credit products and services by providing privileged treatment to those with excellent credentials.
The project will tabulate overall credit rating information by region. Didi will also incorporate statistics such as the total bad debts, as well as the number of users with bad debts per region into the nationwide city credit monitoring system. Based on businesses such as Didi's express, car rental, designated driving, ride-sharing, and bike-sharing, this project's pilot programs will encompass more than 40 million consumers.