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China sees fast growth of on-demand transport market: survey

Source: Xinhua| 2018-05-17 00:25:38|Editor: Chengcheng
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BEIJING, May 16 (Xinhua) -- China has seen vigorous development of the on-demand transport market over the past years, spurred by Chinese consumers who lead most countries in digital adoption, according to a survey released by a consulting company Wednesday.

The survey was conducted by Bain & Company on nearly 2,000 urban Chinese consumers last year.

The survey found that 60 percent of respondents increased their mobility frequency between 2014 and 2016. Bike sharing and e-hailing -- ordering car rides electronically from a mobile phone -- were the two most popular mobility solutions.

While bike sharing was used by 73 percent of respondents, e-hailing was used by 62 percent.

A study in Germany and the United States by Bain showed that only 29 percent of Germans had used e-hailing and just 9 percent bike sharing. In America, 23 percent relied on e-hailing and 8 percent used bike sharing.

In 2016, China's e-hailing market increased to about 23 billion U.S. dollars, more than the rest of the world combined. The market is expected to maintain its robust growth, fueled by a 50-billion-dollar investment in the industry from 2014 to 2017.

Part of the growth is due to the popularity of mobile payments in the country. Chinese consumers began paying with mobile phones in earnest in 2014 and the value of mobile payments made in China is 60 times more than in America.

That Chinese consumers were willing to try new mobility options is another factor contributing to the growth of China's mobility market, according to the report.

"Chinese consumers adopt new practices as soon as they are introduced," said Raymond Tsang, partner with Bain & Company. "With technology integration, government support and the emergence of new options, China's mobility industry is likely to continue on its upward trajectory."

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