New platform aims to service ride-sharing companies

Qiangsheng Taxi, one of the city’s major taxi firms, is entering the ride-sharing business in an alternative way.

Joining hands with LSS Leasing, a financial leasing institution established by listed company Shenhua Holdings Sun Hung Kai & Co Ltd and 58 Group, the taxi firm founded “Qiang Sheng smart-e”, a platform which, according to the joint venture company, provides cars and manpower management to ride-sharing companies.

Zheng Yongqing, general manager of Qiangsheng Taxi, said that service quality will be crucial to the ride-sharing industry – including traditional taxis and burgeoning online ride-hailing – in the future.

“Qiang Sheng smart-e will not compete with other ride-sharing companies, but will instead work out a cooperative relationship with them,” said Lily Hu, president and CEO of LSS Leasing.

The joint venture company is currently focusing on ride-sharing platforms around the Yangtze River Delta region. It plans to expand to some 100 cities nationwide by 2019.

So far, LSS Leasing has been working with ride-sharing platforms such as Caocao Zhuanche, Huolala and Kuaigou Dache.

Meanwhile, Qiang Sheng smart-e is also eyeing freight transport. Hu said most ride-sharing companies focus on passenger transport, so more opportunities may lie in the freight business.

Previously LSS Leasing provided new vehicles and financial services to Huolala and Kuaigou Dache, two city-wide freight service providers.

While LSS Leasing aims at expanding its business, Qiangsheng, the other partner of the joint venture, is seeking a structural upgrade of its business model, as well as expansion of business nationwide.

Back in 2016, Qiangsheng was among the first companies in Shanghai to have acquired a license to run an online ride-hailing business. It also introduced its own app, Qiangsheng Chuxing.

But according to Tangjian, assistant general manager of the taxi company, only about 25 percent of all orders come from the app, because more passengers prefer to book a ride with Qiangsheng via its call center.

“The call center receives more than 14,000 orders on a daily basis,” Tang said.

On the other hand, Tang added that more than 70 percent are still hailing taxis on the road, so there is still huge space for ride-sharing business to blossom in the traditional taxi industry.

“With Qiang Sheng smart-e providing a more professional service to all platforms, we hope to establish a better mechanism in the ride-sharing industry for both drivers and passengers,” Tang said.