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Higher Prices, Bothered Passengers: Why Are Didi’s Prices Going Up?

It has been the question going around Chinese social media: why are the prices of China’s most popular e-hailing app service Didi (滴滴) going up? Users of the mobile taxi-calling app are not happy now that prices are increasing as much as 20%. Read the story of Didi Chuxing, its increasing prices, and what Chinese netizens are saying about it.

Manya Koetse

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on

It has been the question going around Chinese social media: why are the prices of China’s most popular e-hailing app service Didi (滴滴) going up? Users of the mobile taxi-calling app are not happy now that prices are increasing as much as 20%. Read the story of Didi Chuxing, its increasing prices, and what Chinese netizens are saying about it.

It is the question of the day on Baidu’s Quora-like question asking platform: why is China’s most popular car-hailing service Didi Chuxing getting more expensive? And also, more specifically: why is Didi Carpooling (滴滴顺风车), an alleged non-profit service provided by Didi Chuxing, raising its prices?1

News about Didi has been making headlines since the Chinese e-hailing giant acquired the international car-hailing firm Uber in August of this year, and its rising prices have become a much-discussed topic on Chinese social media.

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The Story of Didi

Nowadays it is hard to find an urban Chinese not familiar with these two simple characters: 滴滴 (Dī dī). Didi Chuxing (滴滴出行) is China’s biggest taxi-hailing service, formed from the merger of rival firms Didi Dache and Kuaidi Dache. The former competitors Didi Dache and Kuaidi were backed by China’s e-commerce giants Tencent and Alibaba, and both started in the summer of 2012. They were involved in a fierce competition for market share before finally announcing their merge in February 2012.

After the merge, the company was formerly known as Didi Kuaidi (滴滴快递), until it rebranded as Didi Chuxing in September 2015 with a fresh new logo and image.

Didi also launched a carpooling service called ‘Didi Shunfengche’ (滴滴顺风车, “Didi’s Favourable Ride”) in June 2015. Didi Shunfengche uses an app and advanced techniques to match car owners with customers looking for a ride. The service was allegedly a non-profit one, as Didi said it would offer it for free to “relieve the ‘pain point’ of urban traffic during rush hour, providing a public good and promoting green travel” (FT 2015).

didichuxing

Didi is also often referred to as “China’s Uber” outside the PRC. One year after the launch of Kuaidi Dache and Didi Dache, American e-hailing giant Uber also entered the Chinese market (2013). But during its first years in China, Uber was not doing too well as it lost over $1 billion a year.

Uber China suffered greatly from Didi, its main rival, that was doing a staggering 10 million rides a day in China, while at the same time, Uber was doing 2 million rides a day worldwide.

In August 2016, Uber China finally gave up its Chinese e-hailing war with Didi, and merged with its rival.

Higher Prices, Bothered Passengers

Since the last couple of months, but especially since Didi acquired Uber China (优步), Didi Chuxing has been quietly increasing its prices. The topic of “Didi’s rising prices” (滴滴涨价) has been going around Chinese internet, and it is a source of annoyance for many Chinese car-hailing netizens.

Also for Didi’s Carpooling, prices are heightened 20% since September of this year. A 3 km ride starting price went from 10 RMB (±1.5$) to 12 RMB (±1.8$), and the per-kilometer price went from 1.3 RMB (±0.19$) to 1.5 RMB (±0.22$). It is the third time prices are raised within one year.

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According to a spokesperson quoted by Chinese media, the Didi Shunfengche prices have gone up because carpool drivers will have to take some detours and spend more time to pick up other passengers, for which they need more compensation. The sharp price increase thus is explained to “achieve reasonable cost-sharing, to encourage users to share their ride, and to help develop a healthy industry,” the spokesperson said.

On Chinese social media, netizens are not too happy about the rising prices, with some netizens saying they will switch back to normal taxis instead.

Many also say that it is not good for passengers that Didi now monopolizes the cab-hailing industry since its merge with Uber.

According to Shanghai Daily, China’s Ministry of Commerce is currently conducting investigations into the Didi Chuxing and Uber China deal according to China’s Anti-monopoly law.

“Make the Pig Fat Before You Eat It”

On Q&A platform ‘Baidu Knows’ (百度知道), the question “Why is market-leader Didi Shunfengche raising its prices?” [垄断行业的滴滴顺风车为什么涨价?] recently became the ‘question of the day’, with some netizens providing insightful answers.

One netizen just said: “It is simple: you have to raise and fatten the pig before you can slaughter and eat it” [“很简单,猪养肥了,可以宰了吃肉了”]. Another Baidu user said that Didi “used a long line to catch a big fish” (“放长线钓大鱼”).

What they mean is that the main reason why Didi’s e-hailing service has become so huge is because of the money it poured into subsidies for drivers and riders (“fattening the pig”). Most of Didi’s passengers initially started to use Didi because of its many discounts and low prices, while drivers also joined the e-hailing market for the profits.

In the early years of Chinese e-hailing apps, a survey showed that 55% of cab drivers had a monthly income increase of 10% to 30% since they started using them (Philips & Kim 2016, 241).

Didi kept its rates artificially low to push out competitors and dominate the market. Although new rules for e-hailing companies no longer allow these practices starting from November 1st 2016, Didi has already had enough time to win the “subsidy war”.

The “subsidy war” was played on both sides. Much like its rival, Uber China also kept prices artificially low to win over new customers. For example, a 30 km journey in Beijing that would be about 80 RMB (±12$) per normal cab, which already is relatively cheap, would be 40 RMB (±5.9$) with Uber – an amount that would have to cover not only the cost of the gas, but also that of the insurance, the corporate fees, taxes, and salary of the driver.

Although Chinese passengers were initially the big winners as they got incredibly subsidized rides, they will now be the ‘losers’ as prices are inevitably going up. While drivers and passengers previously had more money in their wallets, Didi and Uber were losing it – with the main goal of making money at a later time (“eating the pig”).

Now that e-hailing has become a normal part of everyday life for many Chinese commuters, it is time for Didi to start making money instead of giving it away. Because they have acquired a monopoly position within their market, riders have few other options left; passengers will pay more, drivers will make less.

What About Uber?

Chinese riders will still have the choice to either take Didi Chuxing or Uber in the future, especially now that ride-hailing companies like Uber have become officially legalized by the Chinese government (they previously were in a legal grayish area).

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They will keep a separate identity for Uber because, amongst other reasons, it provides a somewhat different service than Didi. When riders order a Didi ride through their mobile phone, the request of the ride and destination goes out to all the cab drivers in the area. Whoever wants to takes the ride can take it, and every driver has the right to take or refuse the request. After receiving a ride, passengers pay for it through cash or Alipay/WeChat pay.

uub

Uber, on the other hand, is more service-based. With Uber, passengers order a car without putting in the destination. The driver will only know where to pick up passengers, but not where they are going. They are therefore not able to refuse rides based on destination, whereas the normal Didi service cars can do this. Another big difference is the way of paying: all Uber rides will be deducted from your Uber account that is connected to your credit card, and passengers never pay the driver directly.

One thing that is not different is that Uber China is also getting more expensive.

Not All About The Money

On Sina Weibo, many netizens respond to the heightened prices, some with annoyance, others with a pragmatic view.

Many netizens share screenshots of their Didi bill, saying: “Ouch, this ride normally just cost me at most 15 RMB (±2.2$) and now it costs me 19.9 RMB (±2.9$).”

price

“No problem for me, go ahead and raise your prices, I’ll just stop taking your rides,” one netizen comments, along with multiple similar responses. “If the prices are raised, I’ll stop using these services. I only started using it because it was cheap. Of course, it is convenient, but for me, the price is key,” another Weibo user comments.

Some netizens are disappointed: “With these rising prices, e-hailing (网约车) will become a high-end service. And there’s nothing to do because there’s no competition now,” one netizen posts.

One Beijing male netizen says: “Didi’s moment of crisis will come. The drivers will walk off because they dislike the lower pay, the passengers will stop riding because they dislike the higher fairs.”

Many netizens are especially disgruntled because China’s Paypal-equivalent Alipay (支付宝), a very common way of paying for e-hailing, recently announced it will start charging users fees starting from October 12. “Didi prices going up, Alipay charging fees, what can I do?!”, one Weibo user wrote.

Another netizens remarked: “The fact that prices of e-hailing and e-banking are going up now shows that the cards are shuffled in the domain of e-commerce, and that capitalism is now taking over the internet.”

There are also voices saying now that unfair “subsidy wars” will soon become illegal in China, there will be more opportunity for competition to grow bigger. The Yidao (易到) car-hailing services, for example, might finally get a chance to expand. In 2010, Yidao was the pioneer of car-hailing apps, but since its prices were always higher than its competition, it did not become as big as Uber or Didi did.

yi-dao

But here, it might not be all about the money. When Chinese riders will get more used to paying higher prices for their e-hailing services, they might start focusing more on the ride quality than its price. This is another reason why companies such as Yidao have not yet lost the race. Chinese online entertainment company LeTV invested 700$ million in Yidao last year, as the company is likely to start focusing more on offering different services (films, tv) to customers to make their ride as enjoyable as possible.

They have also joined hands with restaurants, hotels and other consumer sites to expand their business model. Passengers riding with Yidao could, for example, get coupons or vouchers for restaurants and vice versa.

Some Weibo netizens also feel that money is not the sole factor in the recent Didi developments, and they are more than prepared to pay the heightened prices: “This has nothing to do with money. A couple of years ago when Beijing did not have Uber or Didi yet, you would wait by the side of the road to hail a cab, and while it rained and stormed you would wait in the rain for 40 minutes with your kid by your side, and still not one car would stop. Did you forget about that?”

Many netizens, however, are not convinced: “I won’t ride Didi anymore.”

– By Manya Koetse

References

Philips, Roger A. & Eugene P. Kim. 2016. Business in Contemporary China. Routledge: New York & London.

1(垄断行业的滴滴顺风车为什么涨价?)

©2016 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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    Jon

    September 14, 2016 at 3:50 am

    Pay wall to read this? Fucking lame. Nope! Byeee!

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Backgrounder

Coronavirus on Chinese Social Media: The 8 Major Trends in Times of the 2019-nCoV Crisis

The 8 main trends defining the online responses to the Wuhan coronavirus on Chinese social media.

Manya Koetse

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Since the outbreak of the new coronavirus becoming big news in China and around the world, there have been few other topics going trending on Chinese social media than those related to 2019-nCoV. What’s on Weibo gives an overview of the most noteworthy online media trends in China regarding the corona-crisis.

 
By Manya Koetse, further research and news-gathering by Miranda Barnes
 

From panic to patriotism, the outbreak of the coronavirus has led to a wide range of different responses from Chinese netizens and online media outlets over the past few weeks.

Although the first reports on the emergence of a pneumonia-like illness in the city of Wuhan came out in late December, it wasn’t until mid-January that the new virus, belonging to the coronavirus family, started dominating the top trending lists on social media in China and beyond.

The hashtag “Nationally Confirmed Cases of New Pneumonia” (#全国确诊新型肺炎病例#) became one of the biggest news-related topics we have ever seen on Weibo, receiving eight billion views by January 25, and reaching a staggering 13,5 billion views by February 2.

As of February 6th, approximately 28,200 cases of the new virus were confirmed, with over 170 cases reported in countries outside of China. The death toll also became much higher than days before, rising to 564. With these numbers, the coronavirus has exceeded the scale of the 2003 SARS outbreak in terms of infected patients.

Along with the quick spread of the new coronavirus across the country, the general mood and direction of the discussions and trends in the Chinese online media environment have also been in constant flux.

At What’s on Weibo, we have been glued to our social media screens, but because editor-in-chief Manya Koetse has been flooded with daily media requests we have not been able to update the site with regular updates (meanwhile, @manyapan did post regular updates on Twitter).

Here, we will highlight some of the main social media trends we spotted during the outbreak of the new Chinese coronavirus, now and over the past weeks.

 

TREND #1:

Online Backlash against the Eating of Wild Game

As an online media panic broke out around January 20, when a third person had died of the new Wuhan virus, one of the main trends to come up on Chinese social media was an online backlash against the eating of wild game (as reported here by Jessica Colwell).

The backlash flooded Weibo after the downtown Wuhan Huanan Seafood Wholesale Market (武汉华南海鲜批发市场), selling a wide range of dead and alive wild animals – anything from snakes and crocodiles to rats, hedgehogs or bats, – was identified as the suspected source of the deadly coronavirus outbreak.

Image posted by Sina Parenting on February 1st.

Since Chinese researchers linked the novel coronavirus (nCoV-2019) to bats, videos and images of bat dishes and people eating bat soon made their rounds on social media.

Many of these videos were actually unrelated to Wuhan, but were used in condemning the practice of eating (illegal/unsafe) wild game in general.

Around January 23, hashtags such as “Support the Banning of Wild Game Markets” (#支持禁绝野味市场#), “Refusing Eating of Wild Game Starts with You” (#拒吃野味从我做起#), “Control Your Mouth, Refuse Wild Game” (#管住嘴拒绝吃野味#) went viral on Weibo.

As images or videos of people eating bats or other exotic animals soon also spread to Twitter and other non-Chinese social media, some English-language media labeled them as “xenophobic” or “racist” – ignoring the fact that the anti-wild game storm actually started in the Chinese online media environment.

Online information leaflet spread by People’s Daily, “Resisting the Consumption of Wild Game Starts with Ourselves”

State media outlets such as People’s Daily, for example, played a role in the online dissemination of information against the eating of wild game and actually hosted some of these hashtag pages on Weibo.

The main argument behind the backlash is that those eating (unsafe, illegal) exotic and/or wild animals could risk their own health and that of their community and that what you eat is also your responsibility in keeping others safe.

A news story of a man hunting wild animals for consumption made its rounds on Weibo this week.

The backlash against the eating of wild game and online anger against people hunting or illegally buying wild animals for consumption is still ongoing, with some directing their anger against Wuhan people in specific.

This has also triggered discussions on Weibo about discrimination – not against Chinese people in general, but against Chinese netizens discriminating against Wuhan people or even against people from the Hubei province.

 

TREND #2:

Fake News and Censorship

Chinese social media platforms such as Weibo are tightly controlled online environments. When certain sensitive topics pop up, such as the anniversary of the Tiananmen protests, the Hong Kong demonstrations in their early phases, or big political events, virtually all related posts and news sharing will sometimes be removed by online censors.

In the wake of the coronavirus outbreak, this was not necessarily the case. From the start, there was a lot of reporting, sharing, and discussion of the virus online.

However, there certainly has been ongoing censorship of the topic. This was mainly done in the case of netizens reposting videos of chaotic situations in streets or at hospitals, but also in the case of ‘fake news’ posts (mostly called “starting rumors”).

Posts that could potentially trigger unrest or panic also were censored. One hashtag that made its rounds around January 22 was “Escaping Wuhan” (#逃离武汉#), with people trying to leave Wuhan before the city would go on lockdown. That hashtag page was soon completely removed from Weibo.

The comments sections of some posts reporting on controversial or sensitive news were also completely turned off (such as this report addressing local authorities in Wuhan allegedly taking donated face masks).

One Weibo user (@魔女小稀), an alleged nurse, posted a video of people in a hospital hallway on January 24th, claiming that “three [dead] bodies” had been lying in a Wuhan hospital for the entire afternoon covered in white sheets without being removed.

The post and the Weibo user were completely removed from the platform on January 25. By that time, however, the video and allegations were already picked up and reposted internationally.

According to Sina News, the post had been completely false; there were no bodies lying around this Wuhan hospital. If there were people covered in white sheets, it was merely people sleeping in the hallway after waiting for a long time.

This is but one of many examples of ‘fake news’ floating around Chinese social media over the past two weeks, with images and videos being placed in a misleading context, people claiming that patient or deceased numbers were much higher than those reported by the official media, and some even bringing up conspiracy theories about the source of the coronavirus (e.g. that the Americans started it, that it leaked from a biolab in Wuhan, etc).

The problem in this issue is, of course, when do we call it ‘fake news’ and when do we call it ‘censorship’? Amid the chaos and uncertainty of the coronavirus outbreak, it is not always easy to separate the two.

This is also a contributing factor in the general distrust in official media reports that clearly surfaced on Weibo over the past weeks. “I don’t believe it,” is a sentence popping up everywhere on social media.

Spreading online “rumors” is a crime under China’s Criminal Law and is punishable by up to seven years in prison. Although some foreign media outlets, such as this one, make it seem as though it is illegal to share fake news about the coronavirus in particular, it is actually illegal in China to share fake news in general.

 

TREND #3:

Virus Vigilantism

Another trend we noticed on social media during the wake of the coronavirus outbreak is not just a distrust in official media and authorities, but also distrust in fellow citizens.

One clear example that blew up on Weibo is that of a young woman from Wuhan who posted about her traveling to France – and enjoying nice food – despite suffering from a fever and cough. Because she took fever reducers, she claimed to have passed airport temperature monitors without issue.

The post sparked great anger among Chinese netizens and triggered the so-called ‘human flesh search engine,’ with people digging into her personal details.

The incident even led to the Chinese embassy in France investigating the matter. The woman turned out not to have been infected with the virus.

But there are many examples of people exposing and doxing those who allegedly are hindering the collective goal of minimizing the risk of a further spreading of the virus, for example by not self-isolating after visiting Wuhan.

There’s also been widespread online condemnation of people stealing tissue paper from public elevators. Many apartment buildings around China now provide a box of tissue paper for hygienic reasons so that people do not need to touch the elevator buttons.

Surveillance videos of people stealing these boxes have been making their rounds on Weibo and WeChat, such as this lady in an elevator in Chongqing, with thousands of netizens expressing their anger over their behavior – and sometimes naming and shaming them.

 

TREND #4:

Social Media as a Practical Communication Tool

Soon after the scale of the coronavirus outbreak started to become clear, social media platforms such as Weibo were started to be used as practical communication tools for authorities, (medical) organizations, and individuals to spread information or to ask for help.

Social media is now widely used as a practical communication tool for very general matters in the coronavirus crisis (e.g. providing information on how to avoid getting the virus), but also for more specific issues.

Various hospitals in Wuhan, for example, spread digital leaflets online summing up their specific shortages in supplies (face masks, surgical gloves, etc), and how people and organizations can contribute.

Another example is how authorities at various times use social media to search for people who were on board of certain trains or where passengers were later diagnosed with the virus.

But we have also seen individuals reaching out through social media. One woman, for example, reached out to netizens online after she and her husband fell ill and needed someone to look after their children.

Through the help of social media, there are now also local volunteers who help taking care of people’s pets while they are unable to return home to feed them.

One of the hashtags increasingly receiving attention online since early February is “Rescuing the Pets Left Behind in Wuhan Homes” (#武汉滞留家中宠物救援#).

Since January 26, Tencent’s WeChat has also opened a special “epidemic supervision” channel within its app where WeChat users can go to get the latest local information about the virus in their area or ask for medical help.

 

TREND #5:

Propaganda, Pride and Patriotism in Times of Crisis

The outbreak of the coronavirus coincided with the most important holiday of the year in China: the Spring Festival. On Friday, January 24, the CCTV broadcasted its annual Spring Festival Gala (Chunwan), a 4-hour long show that has been airing since 1983. The show is the biggest live TV event in the world, with a viewership of one billion.

The show is usually meticulously planned up to every second – with rehearsals starting months before -, but this year, for the first time ever, it included a segment on the Wuhan coronavirus outbreak. It showed scenes from inside a Wuhan hospital, and the show’s main presenters paid their respects to all the medical workers working day and night.

The event became trending on Weibo under the hashtag “For the First Time in History, ‘Chunwan’ Includes a Non-Rehearsed Segment” (#春晚历史上首次没有彩排的片段#)

It was during this time, with twenty million people under travel lockdown, that the sentence “Jiayou Wuhan, Jiayou Zhongguo” (“Come on Wuhan, Come on China”) was propagated by state media and became widely used on Chinese social media.

By now, the hashtag “Go Wuhan!” (#武汉加油#, hosted by Party newspaper People’s Daily) has over 12 billion views on Weibo.

“1.4 billion Chinese salute you”

Starting from the Spring Festival weekend, Chinese state media began to propagate more positive, patriotic, and nationalistic messages online during the corona crisis, focusing on the unity of China and the dedication and resilience of common Chinese people, with a specific emphasis on medical and army staff.

It is not uncommon, or actually rather common, for Chinese authorities and state media to propagate nationalism in times of hardship (also see our article on online propaganda during the Hong Kong protests).

 

TREND #6:

Quarantine Boredom: From Panic to Humor

From late January, the first humorous memes and videos starting flooding Chinese social media in light of the coronavirus.

Around January 25, there were over forty confirmed deaths due to the new coronavirus and over 1380 known infected patients. Along with the travel lockdown, most of the major tourist attractions across China had shut down, and driving bans were implemented in the city of Wuhan to restrict people’s movements in efforts to contain the outbreak.

What was supposed to be a time of joy and reunion and entertainment (the Chinese New Year) turned into a time of fear and self-isolation for many families in Wuhan and beyond.

Practically locked up in their homes, some people used humor as a ‘defense mechanism’ in times of coronacrisis.

The videos embedded in the thread below are some examples of people making the most of their times in lockdown.

But besides the creative solutions of people avoiding boredom inside the home, there were also many memes going around WeChat and Weibo making fun of the extreme measures taken by people and authorities, such as this photo below that was allegedly taken at a station in Yiwu, Zhejiang, saying: “Some people got off the train in Yiwu but thought they’d ended up in Saudi Arabia.”

There was also this viral image below of an office canteen where people were self-isolating for safety reasons, saying: “Eating at the cantine of my unit now feels more like taking an exam.”

Videos and images of people using sanitary pads, bras, plastic bags, or even fruit to protect their faces due to a scarcity of face masks also continue to make their rounds on social media, with people sometimes mocking neighbors, their friends or family, or even themselves in the extreme and sometimes silly measures they are taking to avoid getting the coronavirus.

 

TREND #7:

Anger against Local Authorities and Illegal Lock-Ins

As panic over the spreading coronavirus has become bigger over the past few weeks, the voices criticizing local authorities and organizations for mishandling the situation have also grown louder.

While loud criticism of the central government is usually censored before triggering bigger discussions, there has been ample criticism of provincial, city, and county authorities and organizations – and not without consequence.

In Hubei, local authorities have been criticized for, among others, initially censoring reports of an emerging new illness in December of 2019.

The mayor of Wuhan, Zhou Xianwang, became a major target of netizens’ anger. In late January, Zhou admitted that he had failed in disclosing information in a timely manner and also “did not use effective information” to improve the local government’s work.

The Hubei branch of the Red Cross Society of China (RCSC, 中国红十字会) also received massive criticism online in early February when it turned out that, while the public donated medical supplies and money, most of it remained in the Red Cross warehouse.

On February 4, Chinese state media reported that the Hubei Red Cross deputy director had been removed from office and dismissed from the leading Party members group of the RCSC branch.

On village and prefecture-level, there has also been public condemnation of how authorities are handling the corona crisis.

Some videos going around social media showed how people, seemingly against their will, were locked up inside their own homes by local authorities after returning from Wuhan (“武汉返乡人员”).

China Youth Daily, the official newspaper of the Communist Youth League of China, also condemned these practices as “illegal” and “inhumane” in an article that has since been deleted.

Through a new WeChat function mentioned earlier in this post, Chinese netizens can now also report any mishandlings of the coronavirus situation.

At the time of writing, there seems to have been some increased censorship, but nevertheless, criticism on local authorities keeps flooding Weibo.

“While people are busy helping themselves and each other, what are the leaders of Hubei and Wuhan doing?”, some people wonder: “Supplies in the hospitals are still scarce, there are still people who are unable to receive help!”

 

TREND #8:

Corona Panic Buying

It was around January 21st when the coronavirus panic reached a peak in China; a third infected patient had died of the virus the day before, the first cases were confirmed outside of China, and several big travel platforms had started to offer refunds or change flights via Wuhan.

Similar to the SARS outbreak in 2003, news of the coronavirus led to waves of “scare shopping” – a trend that also became very visible on social media.

Medical face masks soon sold out in Chinese pharmacies and on e-commerce platforms: around 80 million face masks were sold on Alibaba’s Taobao platform alone on January 20 and January 21st. Those (online) shops still offering face masks exploited the shortage of face masks, and would only sell them at exorbitant prices.

Twenty dollars for a face mask?

Although Alibaba soon announced it would remove sales of face masks from shops that were selling them at unstable prices, the sales and availability of (disposable) N95 masks is still an issue across China, with netizens complaining about it on Weibo every single day.

Another example of consumer panic followed the Jan 31st reports by two medical research institutions on the TCM oral medicine Shuanghuanglian, which would allegedly be effective in combating the new coronavirus.

Shortly after the reports came out, the herbal remedy sold out in stores across the country.

Chinese state media now warn people against “irrational purchases,” saying that the effectivity of herbal remedies such as Shuanghuanglian is still unsure.

Panic buying is a trend that is not just visible on Chinese social media, it is a trend that also seems to be triggered through social media, with rumors and reports of existing shortages of certain products leading to panic.

A clear example is the February 5 run on toilet paper in Hong Kong after rumors spread that the coronavirus outbreak would lead to insufficient supplies.

 

As there are still many new developments and news reports coming out concerning the coronavirus, we will keep on publishing more on What’s on Weibo about what’s trending on Chinese social media. (Also read: Distrust and despair on WeChat and Weibo after the death of Wuhan whistleblower Li Wenliang).

If it’s quiet here, please also follow us on Twitter here and here.

By Manya Koetse, additional research and news-gathering by Miranda Barnes
Follow @whatsonweibo

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Backgrounder

‘Good Doctor’, Digital Hospitals: How Mobile Apps Are Alleviating China’s Healthcare Problems

With the rapid digitalization of China’s healthcare, Chinese patients now have more ways than one to receive medical assistance.

Manya Koetse

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China’s healthcare industry is facing some serious challenges. As Chinese society is rapidly digitalizing, mobile apps now provide innovative solutions to alleviate pressing problems in the country’s health services sector.

 
This is the “WE…WEI…WHAT?” column by Manya Koetse, originally published in German by Goethe Institut China on Goethe.de: “Good-Doctor Apps und Digitale Krankenhäuser.” 
 

Social Credit System, artificial intelligence, surveillance cameras; these are some of the hottest topics making headlines in mainstream Western media when discussing China-related developments recently.

With the rapid digitalization of Chinese society, these topics certainly have come to play a more important role in social media discussions within the People’s Republic of China (PRC). But if there is one issue that seems to concern Chinese social media users the most, it is not facial recognition nor their ‘Sesame score’: it is the topic of healthcare.

In December of 2017, a photo showing a crying mother kneeling down beside a toddler on the sidewalk in front of a Shanghai hospital went viral overnight. The moment was captured on camera by a reporter who was visiting Shanghai’s Children’s Hospital.

The photo of Guo Yinzhen and her son that went viral in China (image via NetEase, source: https://3g.163.com).

The mother, Guo Yinzhen, is a single parent who had traveled from a remote village to seek medical help for her 3-old-son, who was suffering from congenital hydrocephalus or ‘water on the brain.’ Already having traveled to the city multiple times and spending all her money on medical bills, Guo could not afford the additional 100.000 yuan (€ 12.600) for medical procedures needed to save her son’s life.

Guo’s story struck a chord with Chinese netizens, who continue to share the heartbreaking photo on social media to this day. It has become emblematic of China’s healthcare problems.

 

Crowded Hospitals and ‘Healthcare Disturbance’

 

The key to an adequate healthcare system, no matter where in the world, is that there is a right balancing in the “iron triangle” of efficiency/cost containment, high quality care, and patient access.[1] China, however, struggles with all three sides of this triangle.

Guo’s case is an extreme example, but many people in China dealing with less serious health issues and needing basic medical services also struggle to afford and access the healthcare they need.

Over 95% of people in China have health insurance, but people from different regions do not enjoy the same benefits and their out-of-pocket expenses can vary greatly. Uncovered medical costs can sometimes be catastrophic and simply unaffordable for patients and their families.

As more money flows are going to healthcare facilities in China’s cities, there is also the issue of varying levels of providers’ medical education and the overall healthcare quality, with the substantial majority of modern hospitals still existing in urban areas.

Easy access to the right kind of healthcare can be especially problematic for China’s rural population, as people often need to travel long distances and have to go through the lengthy process of registering and waiting for their doctor’s appointment, which sometimes requires them to stay in the city overnight.

For all of these reasons, China’s bigger public hospitals can get super crowded, sometimes resembling shopping malls on an end-of-season sales day. On social media, both patients and medical workers often complain about the stress brought about by the huge crowds and the shortage of doctors in hospitals across the country.

Perhaps it is no wonder that China even has a word to describe outbursts of violence between patients and doctors: ‘Yī nào’ (医闹, literally: “healthcare disturbance”).

Weibo user ‘Sunscreen’ complains about the crowds at Huashan Hospital.

One major problem within China’s healthcare conundrum is the lack of local family or primary-care doctors, which often makes bigger hospitals the first stop to any kind of medical treatment for Chinese patients.

The reasons for this issue are manifold. There is a general lack of trust in private and smaller local healthcare clinics, for example, and patients often choose to go directly to a bigger hospital to avoid making extra costs.

This makes it extra difficult for many community health care centers – that are already struggling – to make enough money and to retain qualified staff. In a society that is rapidly aging, the challenges facing China’s healthcare industry are only becoming more pressing.

 

A Doctor Today, Just an App Away

 

As China’s online environment is thriving, new innovative online apps are popping up on a daily basis. Some of these apps, that have found their ways into China’s most popular app rankings, are offering solutions to some of the country’s most pressing healthcare problems.

One of these apps is Ping’an Good Doctor (平安好医生), which was developed by health insurance provider Ping’an in 2015 and calls itself China’s “one-stop healthcare ecosystem.”

“Ping’an Good Doctor” promotional image by Ping’an.

Employing some 1000 medical staff in its in-house team, contracting over 5,200 external doctors, and collaborating with 3000 hospitals and thousands of pharmacy outlets across the country, the app is somewhat of an “online hospital.”

Through the app, users can look through an online database of medical professionals, order medicine at nearby pharmacies, get 24/7 online medical consultancy, search for information about both Western and Chinese Traditional Medicine, etc., but they can also use Ping’an Good Doctor as a fitness app to track their own health.

Screenshot of Ping’an app screen, by author.

When looking for a specific doctor for a one-on-one consult, the app first lets users select an area of expertise (e.g. dermatology or gynecology), and then offers a list of different specialists in various price categories.

Doctors from well-known hospitals, for example, or those with excellent ratings, have a one-time consultation fee of 100 yuan (€ 12,60). Other doctors can be consulted starting from 30 yuan (€3,70). All costs can be paid efficiently via online payment apps.

Doctors to pick from within the app’s various price categories.

Ping’an Good Doctor uses an AI-driven system to ask patients various questions about their symptoms and to automatically create a user’s medical record to save time. Based on the AI-generated record and the conversation with the patients – files such as photos can also be uploaded to the app -, the doctors can prescribe medicine or refer the patient to a hospital for an offline appointment if needed.

Ping’an recently announced that its number of registered users exceeded 300 million users, with 62 million monthly active users. Because the app keeps building on its AI-driven system, Ping’an Good Doctor can be expected to only become a ‘smarter’ smart health app the more popular it gets.

Although Ping’an is now leading within China’s medical app category, there are many other apps providing similar services, such as Chunyu Yisheng (春雨医生), Haodafu Online (好大夫在线), or DingXiang Doctor (丁香医生).

The emergence of these apps is just one of the many ways in which China’s digital developments, online media, and tech giants are impacting the healthcare industry, profoundly changing how patients receive healthcare information and access medical services now and in the future.

List of recommended medical apps in the Tencent app store.

In a way, China’s medical consultation apps fill the void in offline primary care. Patients who would otherwise turn to hospital care as their first stop can now  access medical consultations any time, any day, at a relatively low cost. Those who suffer from relatively harmless conditions could be diagnosed by a medical specialist via the app and get the medicine they need within a matter of minutes. With the growing popularity of these kinds of apps, many patients no longer need to visit a hospital at all.

Are smart health apps such as Ping’an Good Doctor the solution to China’s healthcare problems? No, they’re not. Struggling mums like Guo Yinzhen will not find the help they need there. But they do contribute to a more efficient healthcare environment where crowd flows in hospitals can be reduced, and patients do not need to spend a lot of time and money to stand in hour-long queues to get five minutes of their doctor’s time.

Although smart health apps could not help Guo Yinzhen and her son, social media apps could. As soon as their story went viral in late 2017, Shanghai Children’s Welfare Foundation Xiaoxingxin offered to cover medical treatments for the little boy, with a notable pediatric neurosurgeon operating the child. According to the latest updates, the boy’s situation was “looking good.”

Hopefully, the same holds true for the challenging sides of China’s healthcare industry.

By Manya Koetse
Follow @whatsonweibo

[1] Burns & Liu, 2017: 3-4.

References/Linked Sources

Burns, Lawton Robert, and Gordon G. Liu. 2017. “Introduction.” In China’s Healthcare Industry: A System Perspective, Lawton Robert Burns and Gordon G. Liu (eds), pp-1-116. Cambridge: Cambridge University Press.

Economist, 2017. “China needs many more primary-care doctors.” The Economist, May 11 https://www.economist.com/china/2017/05/11/china-needs-many-more-primary-care-doctors [20.10.19].

Zhou, Viola. 2018. “Does China Have Universal Healthcare? A Long (And Better) Answer.” Inkstone, Oct 10 https://www.inkstonenews.com/health/china-translated-does-china-have-universal-health-care/article/2167579

This text was first published by Goethe-Institut China under a CC-BY-NC-ND-4.0-DE license (Creative Commons) as part of a monthly column in collaboration with What’s On Weibo.

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