Shenzhen cites risks for ride-hailing drivers amid market saturation

Authorities in Shenzhen have issued a warning on the city's ride-hailing market as it has reached overall saturation, highlighting multiple risks for prospective drivers and investors.

According to a statement released by the city's transportation bureau on May 25, as of April 30, the city had 26 ride-hailing platforms, with 142,247 valid vehicle operation permits and 394,872 valid driver permits.

Monthly data showed that the average daily orders per vehicle stood at approximately 13.01 in April, it added.

"The market is currently saturated amid seasonal demand fluctuations," authorities said, urging potential market entrants to conduct thorough research and assess operating income rationally before making decisions.

Key risks include platforms that control driver earnings, unlicensed intermediaries, and misleading ads promising high income — often leading to penalties for early contract termination.

Drivers should also reject false claims such as "no license needed", as unlicensed operations face fines and potential denial of insurance coverage during accidents.

The statement also advised drivers to choose licensed platforms with deposit protection and legal support, review contract terms carefully, and monitor premium payments to prevent coverage lapses caused by lessors.