China: Plans to regulate ride-hailing startups like Uber and Didi

It appears ride-hailing services that compete with taxis will soon have official approval in China.

The country’s transport regulator has released two first-of-their-kind draft regulations permitting such companies to operate.

The two draft regulations cover reforms in the traditional taxi industry, and online taxi reservation service management respectively.

They’re released amid escalating competition between traditional taxi companies and new operators relying on Internet-based ride-hailing apps.

Xu Yahua, an inspector with the Ministry of Transport, said, “We are planning to provide differentiated management and services to the taxis cruising streets for customers and taxis serving reservation orders. The first kind can pick up customers on roads, or wait for them at taxis stops. They can also provide reservation services. The second kind can only provide reservation services.”

However, the new drafts state that online ride-booking services can only be offered by taxis registered as online ride-booking service providers.

Full content: China Daily

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