May 14 (NBD) -- Recently, taxies in Shanghai were found selling snacks on the back seats, which seems to be a boon for passengers who have no time for meals.

The pilot program is also launched in other cities like Shenzhen, Chengdu, Hangzhou, and Nanjing.

Customers can now buy snacks by scanning QR code in the taxies equipped with a storage sack, and the first purchase costs only 0.01 yuan during the promotion period, reported news portal www.jfdaily.com. Most of the products sold in the "moving shop" are below 10 yuan (1.6 U.S. dollars) and some are even priced lower than in supermarkets.

Drivers are also embracing the new approach to increase their income.

A cab driver in Nanjing said drivers could get 15 percent commission on every product sold. As one of the first-movers to test the new service, he set up a vending shelf on his car in mid-April and has replenished stocks 3 times within 10 days.

Ling Qiang, general secretary of the Nanjing Taxi Association, noted that selling snacks on taxies is viewed as a way to better communication between drivers and passengers and improve services and competitiveness of taxies. In addition, it is a source of extra income for drivers. In some cities, a taxi driver can make an extra 1,000 yuan (157.9 U.S. dollars) a month, reported China Food Newspaper.

Liu Kuang, a writer with China's leading business & technology information provider TMTPost, said that demand for short trips remains vigorous. Statistics show that on average, a cab serves 1,800 passengers a month with each spending 20 minutes in the cab. In-vehicle vending shelves are expected to connect online, offline and mobile application scenarios, and are a great way to increase brand awareness as a confined space will be helpful to draw passengers' attentions to products. Displaying only could also be an excellent way for marketing.

When asked about whether taxies are allowed to sell snacks, Ling Qiang told China Food Newspaper there is no written rule to prohibit such model, but food sold on taxies have to be provided by qualified vendors. 

The sustainability of such model, however, remains unknown as cab drivers are currently doing this for subsidies. But what if the subsidies are removed? In addition, bad experiences brought by squeezed taxi space as well as sanitation issues need to be addressed.

Regarding the sanitation doubts, one operator of the in-vehicle store said they have a rigid food management system, but if customers have any problems, they can make complaints online and get their problems solved.

 

Email: tanyuhan@nbd.com.cn

Editor: Tan Yuhan