Douyin Launches Ride-Hailing Service: Aggregation Model and Market Implications

Recently, users discovered that the Douyin app has launched a "ride‑hailing" service accessible through its wallet feature, initially partnering only with Gaode Taxi and indicating that more brands will be added in the future.

The platform adopts an aggregation model where the entire travel process is provided by the third‑party service provider, with Douyin serving merely as a traffic entry point.

Compared to the Gaode app, Douyin’s version lacks several functions such as carpool, hitch‑hike, and driver‑service, offering only "order invoice," "my coupons," and "book a ride".

Douyin has previously allowed various travel service providers, including CaoCao, T3, and Hello (哈啰), to join via mini‑programs, and it collaborated with Gaode for life‑service tests in several cities last December.

The new launch could generate additional orders for platforms like Gaode but may also dilute traffic for dominant players such as Didi.

As an aggregation platform, Douyin relies on the fulfillment capabilities and service quality of third‑party providers, which can affect user experience due to differing driver quality and pricing structures.

The article cites Meituan’s experience: after initially operating a self‑run ride‑hailing service with high subsidies and losses, Meituan switched to an aggregation model in March 2023, illustrating the financial challenges of independent ride‑hailing operations.

Consequently, aggregating multiple ride‑hailing operators on a single platform reduces cost and financial risk while allocating only user traffic, making it a more sustainable choice for internet companies.