China green lights local councils to license car-hailing services
New regulations set to come into affect in November will empower local governments to regulate car-hailing services, clearing a legal pathway for Uber and Didi Chuxing
China’s transport authority has liberalised regulations for car-hailing and ride-sharing services, giving local governments the discretion to allow for competition with licensed taxi drivers within their city limits.
Starting November 1st, car-hailing operators including Didi Chuxing and Uber must obtain licenses from local authorities to operate, according to regulations posted on the websites of the Ministry of Transport, the Public Security Bureau and the General Administration of Quality Supervision, Inspection & Quarantine.
The latest regulations released Wednesday contained clauses that were friendlier to car-hailing services compared with an October draft. In the earlier version, car-hailing services had to establish legal subsidiaries in every city in which they wanted to operate, in addition to obtaining business permits from the transport authority.
The new rules are more flexible for drivers working for car-hailing services, said Analysys International’s Beijing-based analyst Zhang Xu.
The new operating rules also established a floor for fares, allowing service providers to charge at cost, compared to previous regulations that barred any deviation from government-set prices.