Ride-hailing giant Didi revealed a glimpse at its commission rates and cost structure on Monday in a question-and-answer post published on its platform to address criticism for its cash-burning business model.

Nearly one-third of its commission revenue was spent on driver subsidies over the fourth quarter of 2018. Operating costs were roughly equivalent to 21% of total fare revenue from its private car hailing business during this time, Chen Xi, executive president of Didi’s Ride-sharing Business Group, said on Monday. Meanwhile, fourth quarter average commission rate was 19% of fare revenue, and the 2% difference was recorded as operating losses.

Chen stressed the continued losses could not last long, promising more efforts on cost reduction in order to “run businesses in a sustainable way.”

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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen