The approval is welcome news to Uber and other app-based ride-hailing services, which often face resistance and sometimes even lawsuits as governments around the world adapt to the challenges of regulating the new business model. Drivers need at least three years of driving experience, and must not have violated any serious traffic laws or committed any crimes, according to the new regulations.
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We noticed that the Rules require, in general principle, local taxi administration authorities to manage the platform licensing application process, and a certain discretion is granted local governments to determine the detailed operating requirements.
Regulators a year ago banned Uber and Chinese competitors led by Didi Chuxing from using drivers without taxi licenses.
Huang Shaoqing, a professor of applied economics at Shanghai Jiaotong University, commented to the Financial Times that, “In practice, a local government could use this language to set prices for online cars higher than municipal taxis”.
The rules provide a legal way forward for the industry, and ensure public safety and fair market competition, China’s Deputy Transport Minister Liu Xiaoming said at a Beijing press briefing. Uber for example, faced (and is still facing) the headache of battling individual state and city regulations consistently.
“We welcome the new regulations, which send a clear message of support for ridesharing and the benefits that it offers riders, drivers, and cities”, Zhen Liu, SVP Corporate Strategy of Uber China, said in a statement.
The law will also apply to Uber’s main competitor, Didi Chuxing.
Drivers and their vehicles have newly released standards that have to be met before they can use their vehicles for such services.
US-based Uber, which competes with Didi Chuxing, said it was confident to get operator’s license at the earliest possible time, and it meets with requirements such as China-based servers.
Didi and Uber both said Thursday they welcomed the regulations and were prepared for implementation. Meanwhile, traditional taxi services will also see more flexible management.
Beijing has given the green light for Uber Technologies Inc. and its Chinese ride-hailing rival to operate legally in the country.
While it has adopted the suggestion made in the draft that cars must be taken off the road after eight years, the policy relaxes the standard, allowing cars that haven’t traveled 600,000 kilometers in eight years to continue to be used for other purposes.
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They are also demanding better rules to level the playing field regarding pricing. All drivers must register with local taxi regulators and can not have criminal records.
