The ride-hailing industry in 2026 is navigating a deep phase of regulatory compliance. As a leading ride-hailing platform under Geely Holding, CAOCAO INC had given the market a glimpse of hope for profitability in the sector after reporting its first-ever quarterly profit at the end of 2025. However, entering the second quarter of 2026, a series of incidents involving "ghost cars" threatening passengers, joint reprimands by multiple government departments, and a massive surge in user complaints have instantly pushed this platform, which had just reached the threshold of profitability, into the center of a public opinion storm.
As safety baselines are repeatedly breached and compliance promises become empty words, this ride-hailing platform, once seen as a "national champion," is facing its most severe crisis of trust since its inception.
The Shanghai "Ghost Car" Incident Becomes a Landmark Case
Late on April 17, 2026, a passenger, Mr. Huang, arriving at Shanghai Hongqiao Airport, booked a Tesla ride via a third-party platform for CAOCAO INC. The vehicle information clearly displayed on the screen turned out to be a grey BYD at the pickup point. When questioned, the driver casually explained that the original car was in an accident and guided Mr. Huang into the vehicle during his moment of hesitation.
Once the car left the airport vicinity, the driver immediately demanded payment offline, bypassing the platform. After Mr. Huang firmly refused, the driver's demeanor changed, issuing a threat: "Either get out and find another ride right now, or pay offline. There's no other choice." Forced to exit the vehicle for safety reasons on a remote late-night road, Mr. Huang discovered the driver had not canceled the platform order, and the trip was still being charged. He had to cancel the order himself and immediately pressed the platform's "one-click alarm" button.
This seemingly ordinary dispute was later confirmed to be a classic case of illegal operation with "no driver or vehicle certification": the involved BYD did not possess the required online car-hailing transport permit, and the driver lacked the necessary professional qualification. Following exposure, Shanghai transport authorities listed it as a typical warning case in the "Sharp Edge 2026" ride-hailing专项整治 campaign, marking the first major违规 incident involving a leading platform publicly reported since the campaign began.
More shocking was the platform's initial response. After the incident, CAOCAO INC customer service initially offered only 15 yuan in ride coupons as compensation. Upon the passenger's refusal, this was raised to 50 yuan, with no reasonable explanation for how the "ghost car" successfully received the order. Only after media介入 and formal regulatory investigation did the platform belatedly issue a statement, confirming the passenger's account, permanently banning the driver's account, compensating the passenger 500 yuan, and offering a public apology.
On May 18, the Shanghai Municipal Transportation Commission, along with public security and market supervision departments, launched a formal inquiry into CAOCAO INC. The platform had to admit significant technical shortcomings and management gaps in core areas like "ghost car" identification, real-time order monitoring, and risk预警 for abnormal behavior. According to regulations, the platform faces combined administrative penalties of up to 130,000 yuan for dispatching orders to unqualified personnel and vehicles and allowing the major safety hazard of "vehicle-driver mismatch" to persist.
Full-Scale违规 Data Exposed, Platform Faces Joint Reprimand
The "ghost car" incident was not an isolated case. As Shanghai's "Sharp Edge 2026" campaign progressed, authorities uncovered numerous违规 leads involving CAOCAO INC in Shanghai. In just the third phase of the campaign, the city investigated 2,592 ride-hailing violation cases, with cases traced back to CAOCAO INC accounting for over 30%.
On June 29, 2026, the Shanghai Municipal Transportation Commission jointly reprimanded 24 ride-hailing platforms. CAOCAO INC was单独 named and通报 for 7 typical违规 cases, with problems集中在 three core areas: persistently dispatching orders to unqualified drivers and unlicensed vehicles, with a compliance rate长期 below industry average; incomplete and untimely reporting of operational data to regulators, with suspected concealment of违规 orders; and模糊 pricing公示, with隐形溢价 on some routes infringing on passenger知情权.
This was not the first time CAOCAO INC faced penalties for compliance issues. Public data shows its operating entity, Hangzhou Youxing Technology Co., Ltd., has accumulated 1,492 administrative penalty records since成立, with total fines reaching 12.7082 million yuan, mostly related to unqualified drivers and unlicensed vehicles. In May 2026 alone, the platform added 20 new penalty records.
At the reprimand meeting, authorities明确 stated that "vehicle-driver mismatch" is now officially recognized as a major safety hazard. Future整治 will not end with fines; platforms failing整改 with persistently low compliance rates will face the severest penalty of having their regional operating资格 suspended.
Behind the Profit Mirage: Long-Term Losses and Stock Plunge
The接连 compliance scandals shattered the "profitability" image CAOCAO INC had好不容易营造. In March 2026, the platform released its 2025 annual report, showing seemingly impressive results: annual revenue of 20.190 billion yuan, up 37.7% year-on-year; net loss narrowing by 50.8% to 614 million yuan;首次 positive adjusted net profit in Q4 2025; and gross margin rising to 9.4%. This report initially sparked欢呼 in capital markets about a profitability拐点.
However, beneath the表面 figures lies intense financial pressure. By the end of 2025, CAOCAO INC's total liabilities stood at 9.256 billion yuan, including 7.289 billion yuan in current liabilities, with a net current liability position of 4.241 billion yuan. Total borrowings were 7.207 billion yuan. Despite having 5.5 billion yuan in unused bank credit, short-term偿债 pressure remains high. To maintain expansion, the platform added 59 new operating cities in 2025, bringing total coverage to 195 cities. Massive investments in new cities, continued cash burn from Robotaxi autonomous driving业务, and acquisitions of关联企业 have all drained cash flow.
The capital market did not buy this "profit story." Since 2026, CAOCAO INC's Hong Kong stock price has持续 declined. As of May 18 closing, the share price was only HK$22.92, down over 70% from its August 2025 all-time high of HK$92.5 and down about 44% from its IPO price, erasing over ten billion Hong Kong dollars in market value. To stabilize the price, the platform紧急推出 a share buyback plan of up to HK$200 million on May 14. However, amidst the "ghost car" scandal and regulatory reprimand, the buyback failed to halt the decline.
Many industry analysts指出 that CAOCAO INC's so-called "profitability" is essentially a short-term mirage achieved by cutting safety investments, relaxing compliance checks, and reducing客服运营 costs. To quickly摊薄 per-order costs, the platform continuously lowered entry barriers for drivers and vehicles, allowing大量 "ghost cars" and unlicensed vehicles onto the platform. This seemingly boosted order volume but埋下 endless safety hazards. This profit model, built on sacrificing safety, was doomed from the start.
Massive Complaint Surge, Pressure on Both Passengers and Drivers
Regulatory fines and stock plunges ultimately point to daily operational漏洞. In Q2 2026, complaints against CAOCAO INC on第三方投诉 platforms surged集中. On one platform alone,累计投诉量 exceeded 15,000条,来自 both passengers and drivers, creating a双向矛盾.
Passenger complaints集中在 several高频 scenarios: users in Guangdong receiving unauthorized payment deductions for rides in Beijing, with累计 losses near 500 yuan and客服 failing to refund or cancel免密支付; drivers accepting早班机 airport rides then失联, with客服 unresponsive, causing passengers to miss flights and incur数千元 losses, with the platform offering only 30 yuan in coupons; and numerous reports of vehicle-driver mismatch with no后续跟进.
Drivers also face difficulties. Many report being unable to注销 accounts tied to platform-affiliated租赁公司 vehicles, with applications ignored. Others complain about平台随意判定违规,无故 deducting account balances, with申诉通道 ineffective and客服态度恶劣.
From its成立 in 2015 to its港交所上市, CAOCAO INC took 11 years to finally touch profitability, only to repeatedly fail on the most fundamental safety底线. The Shanghai "ghost car" incident should not be dismissed as an "individual driver's违规"; it is the inevitable result of the platform's long-term prioritization of scale over compliance and profit over safety.
For the ride-hailing industry, profitability is not the ultimate goal. Ensuring every passenger's safe arrival and protecting every driver's legitimate rights are its core purposes. CAOCAO INC now stands at a合规整改 crossroads: continue taking shortcuts with a "profit-first" mindset or下定决心 to补全 safety and compliance短板. The answer is already written in every passenger's choice.
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