(Yicai Global) March 21 -- Meituan-Dianping, China's online platform for ordering lifestyle products from food to movie tickets, has unveiled its car-hailing services in Shanghai to rival the market leader Didi Chuxing Technology Co. The move represents the first step by Meituan to expand its ride-hailing services to other major cities following its introduction in Nanjing, capital of East China's Jiangsu province.
Meituan, backed by Tencent Holdings Ltd., will offer its new service through its app. Users in Shanghai will be prompted to Meituan Dache when they access the app. It will provide them with one-click service for calling taxis or express transport vehicles. Meituan is currently offering discount vouchers to promote its new service. Users can get CNY14 (USD2.2) discount for ordering express car services and CNY3 for ordinary cars.
Meituan will also offer incentives to drivers, with a guaranteed income of CNY600 if a driver is available online for over 10 hours between 6 a.m. and midnight and receives no less than 10 orders. They will get another CNY200 if they achieve certain business volume. During the initial weeks, drivers don't have to pay any commission to Meituan, except for CNY0.5 information fee for each order.
Meituan Dache takes 8 percent commission fee from drivers in Nanjing, while drivers registered in Shanghai can enjoy "zero commission" within the first three months, it said.
Meituan reportedly plans to unveil its ride-hailing services in other major cities in China, including Chengdu, Hangzhou and Xiamen.