Shanghai to stop issuing new ride-hailing permits as industry sees saturated market conditions nationwide

Shanghai on Saturday suspended applications for ride-hailing vehicles’ operational capacity verification, a precondition to apply for a permit

The city’s municipal government will stop accepting new ride-hailing permit applications from September 20

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Shanghai’s latest initiative is expected to ensure order and the healthy development of the city’s ride-hailing market. Photo: Shutterstock

Published: 5:44pm, 23 Jul 2023Updated: 8:48pm, 23 Jul 2023

The municipal government of Shanghai has started a two-phased process to cease issuance of new online ride-hailing permits in China’s financial capital, following similar moves in other mainland cities amid worsening market saturation in this industry.

Shanghai on Saturday kicked off the process by suspending applications for ride-hailing vehicles’ operational capacity verification, a precondition to apply for a permit, according to a post published last Friday on the official WeChat account of the eastern Chinese city’s Road Transport Department.

The city’s municipal government will stop accepting new ride-hailing permit applications from September 20.

This move was made to ensure an orderly and healthy development of Shanghai’s ride-hailing market, as well as help secure the “legitimate rights” of drivers in this industry, according to the WeChat post.

Shanghai’s saturated ride-hailing market has long been on the cross hairs of the city’s lawmakers. Photo: Shutterstock

At present, there are more than 76,000 registered ride-hailing vehicles and 50,000 regular taxis in the city of more than 26 million residents.

Restricting the number of ride-hailing operations in Shanghai’s public transport system will not have a significant impact on how people in the city commute, according to the Road Transport Department’s WeChat post.