Research On Chinese Online Ride-Hailing Industrial Organization Based On The SCP Paradigm

Online ride-hailing as a representative of sharing economy in the Internet plus era,it meets the demands of the differentiation and personalized service and greatly convenient for people to go out.This paper use Online ride-hailing industry as the research object,it not only adopts the combination of theory and practice methods, but also adopts the combination of quantitative and qualitative methods, it also uses specific case and uses the SCP analysis paradigm to analysis China’s Online ride-hailing industry’s market structure, market behavior and market achievements on the basis of existing data.Analysis shows that the China’s Online ride-hailing industry’s market structure belongs to oligopoly market structure, its product differentiation degree is not high and the market barriers is higher;This paper uses Bertrand game model to analyze the Di di and Kuai di’s price competition before their merger,it concludes that when the price down to the cost,it reaches Bertrand equilibrium,at this point the profit is zero,the two eventually merge to stop the vicious competition and united against the enemy in order to achieve bigger targets.Besides price competition,Online ride-hailing industry’s product difference competition and marketing strategies are also very competitive;From the view of market performance, the Online ride-hailing’s resources have high efficiency, strong ability to technological progress, passenger satisfaction is also very high, economic benefit is not good enough but there are a lot of profits.Based on the analysis of China’s Online ride-hailing industry using the SCP analysis paradigm,it puts forward that there are three controversial points when the government regulate Online ride-hailing industry:whether private cars can be as special cars,whether online ride-hailing subsidies belongs to unfair competition,whether Di di and Kuai di’s merger involves monopoly.Then it puts forward Suggestions for the government regulate Online ride-hailing: improve the entry barriers of Online ride-hailing industry, object to Online ride-hailing subsidies battle against grab market share,promote cooperation between Online ride-hailing companies.