Core Viewpoint - The income of ride-hailing drivers is ultimately determined by the income of individuals in other industries, while the pricing of ride-hailing services is dictated by market supply and demand rather than the drivers' labor input [1][12]. Regulatory Actions - Recently, Xi'an has banned "fixed-price" and "discount orders" in the ride-hailing market, effective from August 19, due to complaints from taxi drivers about unfair competition and disruption of market order [2]. - Other regions, including Jiangxi, Zhejiang, Henan, and Guangdong, have also taken steps to curb low-price competition to protect drivers' rights [2]. - Xi'an's decision is notable for its comprehensive ban on these pricing strategies, which is rare compared to other regions that have only issued warnings [2]. Market Dynamics - The ride-hailing market has been characterized by various "chaotic phenomena," but outright banning fixed-price orders is not seen as a viable solution [3]. - The term "involution" has been misused in discussions about competition, where low-price competition is often labeled as involution, obscuring the real issues [4][5]. - Low prices can lead to market expansion and are often a result of technological advancements and business model innovations [6][8]. Consumer and Driver Impact - Banning fixed-price orders may negatively impact both passengers and drivers, as passengers would face higher costs and reduced choices [9][10]. - The demand for ride-hailing services may decrease if prices rise, which could ultimately harm drivers' earnings despite higher fares [11]. - There is a divide among drivers regarding fixed-price orders, with some preferring them for their efficiency and others opposing them due to perceived lower earnings [11][17]. Regulatory Perspective - Current regulatory approaches often view the ride-hailing market as an extension of the traditional taxi market, which fails to recognize the distinct nature of ride-hailing services [14][15]. - The ride-hailing market operates on a two-sided platform model, where increased participation from both drivers and passengers leads to lower costs and prices, a dynamic not present in traditional taxi services [15][16]. - The existence of fixed-price orders is seen as a necessary feature of the ride-hailing market, providing efficiency and certainty for consumers [16]. Future Considerations - The recent reduction in commission rates by several ride-hailing platforms indicates a potential for improved earnings for drivers if regulatory burdens are eased [17]. - The inconsistency and variability of regulations across regions complicate operational efficiency for ride-hailing platforms, suggesting that a shift in regulatory thinking may be necessary for the industry's growth [17].