Two of China’s famous taxi-calling apps have announced the cancellation of their payment subsidy programs.

Tencent's taxi-calling app Didi and Alibaba's Kuaidi issued the announcement on Saturday on Weibo. This signaled a break in the price war between the two apps, which have both contributed to the rise in China’s mobile payment platform.

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Kuaidi’s subsidy program would end by 12 midnight on Saturday after operating for more than five months, according to a letter released by the company on Friday. But it said that it would give customers periodic discounts in the future.

The letter which Kuaidi sent to users said that the company has received numerous feedback saying that what their customers need is not a subsidy but a way to call taxis in a more effective and convenient manner. The company reiterated that this was the original goal of the app.

Didi also announced that it will halt cash subsidies for its subscribers who call for taxis through the app. Instead, the company said that it would offer more rewards other than cash.

Both companies, however, said they will continue their subsidies for cab drivers.

From December last year, Alibaba and Tencent have been investing in the subsidies as a way to promote their online payment platforms.

Under the subsidy program, passengers and cab drivers could receive payment if a passenger selects to call a cab and pay fare through the online payment platform of the two ecommerce companies.

The end of the first quarter of 2014 recorded around 100 million users who were using taxi-hailing apps in China. This was according to data provided by Enfodesk, a market researcher.

The data also showed Kuaidi topping the list with 51.6 percent market share. Furthermore, the number of locations covered by both Didi and Kuaidi reached around 200.

TagsDidi, Kuaidi