Why is Wanshun Car-Hailing in a Hurry to Go Public?

[VonViolet]

Wanshun Car-Hailing is in a hurry to go public mainly to increase its brand awareness. Introduction: Wanshun Car-Hailing is a mobility platform that integrates the new transportation model of taxi + internet, channels + users, and a partnership system. In 2017, Wanshun Car-Hailing obtained the "National Online Service Capability Certification for Ride-Hailing Platforms (National License)," becoming the first platform in Guangdong Province and even the entire South China region to receive this certification. Services: Express Ride: Book a ride anytime, anywhere, providing users with economical and fast travel services. Intercity Carpooling: Multiple cross-city carpooling routes, the farther you go, the more cost-effective it is; bus prices with private car treatment.

[JudeMarie]

I think Wanshun is in a hurry to go public mainly for the money. The ride-hailing industry burns cash like crazy—driver subsidies, user coupons, and marketing campaigns all require real money. I saw their draft IPO prospectus last year; they've expanded to over 300 cities nationwide, spending billions just on vehicle compliance upgrades. With giants like Didi and T3 waging price wars daily, Wanshun will run out of ammunition sooner or later if it doesn't go public to raise funds. Besides, their early investors have waited six or seven years for an exit via IPO. If they delay further and a capital winter hits, it'll be even tougher. But going public isn't a cure-all—they need to genuinely grow their user base. I tried Wanshun twice this month, and the wait time was still 50% longer than Didi's.

[DeCarlos]

I think Wanshun is rushing to go public to strike while the iron is hot and grab a slice of the pie. In recent years, there have been many policy incentives for new energy vehicles, and local governments are promoting electric ride-hailing services. They bet on new energy transportation capacity back in 2020, and now 70% of their fleet consists of green-plate vehicles. If they can raise 2 billion yuan through an IPO now, they could immediately deploy 50,000 new vehicles. Additionally, the compliance process for ride-hailing services is accelerating, and non-listed companies are facing stricter scrutiny. Just yesterday, news broke that a certain platform was fined 30 million yuan due to licensing issues. After going public, regulatory pressure would ease somewhat, and they could also use the IPO as a publicity stunt to burnish their image, making passengers perceive them as more reliable. However, all of this requires real financial backing—reducing the driver commission by a couple of percentage points would be more effective than any advertisement.

[HaydenAnn]

As someone who follows the mobility industry closely, I see Wanshun's IPO push as essentially a battle for market positioning. Currently, capital markets are valuing ride-hailing companies at peak levels—last year, T3's funding round valued it at 25 billion. If Wanshun misses this window, it'll become even harder once the giants fully penetrate third- and fourth-tier cities. They place particular emphasis on county-level markets, having set up service stations even in fifth-tier cities like my hometown. The funds from going public could quickly replicate this strategy, but the key is solving the driver supply issue—last month when I used Wanshun back home, I waited 20 minutes for a three-kilometer ride. That said, the brand recognition post-IPO should make it easier to recruit drivers.

[DiFrank]

Wanshun is in a hurry to go public mainly to answer to investors. Tianyancha shows they've gone through six rounds of financing, with the final round's VAM agreement expiring next year. If they don't list soon, they'll have to repurchase shares at 15% annual interest, which would be disastrous. Now that the subsidy war has just ended, industry gross margins have rebounded to 18%, making it an ideal time for IPO. Moreover, local governments are pushing too - last year's agreement signed in Guizhou explicitly mentioned supporting local enterprises to go public. But I'm concerned about their expansion pace. Their driver training is clearly lagging behind - last week when I took their car, the driver didn't even know how to use navigation. Such poor experiences won't retain customers. However, with IPO funds, their training system should improve somewhat.

[OHeidi]

From a driver's perspective, Wanshun's IPO is actually quite a double-edged sword. In our fleet group chat, everyone's saying that after going public, the company might increase subsidies since they'll have more funds. Currently, Wanshun takes a 23% cut per order, which is 2 percentage points less than Didi. But being listed means they'll need to present impressive financial reports, and they might turn around and raise commission fees then. There's also a key move behind their rush to go public—last year they suddenly launched a driver shareholding plan. Our team leader was allocated 5,000 shares. This is clearly to create momentum for the IPO, getting the driver community to help boost the valuation. But I genuinely suggest they focus on solidifying their service first. Last time a passenger complained about me taking a detour, it took customer service three days to resolve it. That kind of experience won't help even if they go public.