China cuts fines on a range of ride-hailing violations to help bolster the industry’s legal framework after Didi’s debacle

The transport ministry and five other agencies made revisions to the rules covering the administration of online taxi-booking business operations

The revisions did not change existing penalties imposed on ride-hailing platforms that are caught operating without a licence

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Chinese authorities have significantly reduced fines slapped on those who provide unlicensed ride-hailing services. Photo: Shutterstock

Published: 8:00pm, 6 Dec 2022

Chinese authorities have significantly reduced fines slapped on those who provide unlicensed ride-hailing services, months after the State Council moved to relax penalties in the transport industry to introduce further local administrative discretion.

Individuals who provide ride-hailing services without a specific permit for their vehicles will be fined from 3,000 yuan (US$431) to 10,000 yuan, while drivers with no qualifications will be charged from 200 yuan to 2,000 yuan, according to the latest revisions made to the country’s Interim Measures for the Administration of Online Taxi Booking Business Operations, which were announced on Monday by the Ministry of Transport and five other agencies.

Those penalties are down from a range of 10,000 yuan to 30,000 yuan for the violations stipulated in the original rules enacted in 2016.

Ride-hailing drivers also no longer face penalties for failing to carry their vehicle and driver permits, an offence previously subject to a fine ranging from 50 yuan to 200 yuan. In China, ride-hailing drivers and the vehicles used to provide such service must be licensed by the government.

A woman hails a Shanghai taxi cab using a smartphone app. Photo: Shutterstock

The revisions reflect continued efforts by the central government to improve the legal framework covering the country’s ride-hailing services market, which is the world’s largest, following the end of its year-long cybersecurity investigation of Didi Chuxing.

In August, the State Council – the country’s chief administrative body – issued a circular that cancelled 29 penalty charges in public security, transport and market regulation, and adjusted 24 fines in transport and market regulation.

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