Quality is key, car-hailing survey finds

China has nearly 500 million online car-hailing users with the sector’s market capacity reaching 380 billion yuan (US$53.3 billion), according to a survey by consulting firm J.D. Power.

The study found that cost-effectiveness was still the most important factor for most users.

But as the market continues to mature, users are willing to pay for better services, the survey showed.

For example, the survey found, when users choose a car service to take their children to school or their parents on a trip, they give priority to quality rather than price.

Pei Lin, director of digital customer experience practice at J.D. Power China, said: "Car-hailing companies need to focus on quality as the top priority. Users are beginning to pay attention to the details of services in all aspects during the car-hailing process. Therefore, focusing on user experience and improving service quality will be a decisive force for firms to establish core competitive advantages."

The survey showed that the top three problems that China's online car-hailing users complained about were drivers being too far away, the car-hailing platform taking too long to take orders and a lack of response and no vehicle.

There are three kinds of car-hailing enterprises, including Internet platforms such as Didi and Dida, service platform Meituan and Autonavi, as well as automakers and car rental companies.

Automakers are entering car-hailing market to seek new opportunities for further growth amid a decline in car purchases in a weak market.

The study was based on 15,018 responses. It included 10 different car-hailing brands and was held from November 2019 to January 2020.