UCAR posts order growth, narrows net loss in H1 2016
UCAR’s revenues rose 624% to RMB 2.32 billion in the first six months of 2016. Car-hailing orders climbed 283% to 55.34 million during the time.
UCAR, China’s largest B2C ride-hailing service provider, announced on August 22 that the company’s revenues leaped 624% to RMB 2.32 billion in the first half of 2016. The company also recorded 55.34 million ride orders, up by 283% YoY. Gross revenue per order reached RMB 43.7, according to the company’s interim report this year.
As of the end of June, 2016, the company has served 6.25 million paid users. The car-hailing app has registered 21.52 million downloads. UCAR operates an average of 304,000 ride-hailing orders per day, up by 281% YoY. Net loss in the first half of the year was RMB 1.39 billion, after deduction of RMB 985 million shares incentives accounted as a non-recurring loss.
In the second quarter of 2016, the company posted 31.65 million total orders and 348,000 daily orders, both up by 33.6% QoQ. The company attributed its solid growth to its continuously optimized algorithm which improved the system’s capability to allocate ride-hailing orders, reduce cruising and fuel consumption. The gross loss margin per ride continued to narrow.
China’s transport authorities issued provisional guidelines on July 28 that regulate the booming ride-sharing services. Under the guidelines, drivers have to undergo assessments before they are allowed to conduct chauffeured service.
It is also divulged in the interim report that UCAR is venturing into new business areas such as vehicle sales and instant loans, leveraging its foothold in ride-hailing to create new profit-generating business in car sales and financing. （Translated by Jerry）