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Important news
在线翻译:
szdaily -> Important news
CHINA LEGALIZES RIDESHARING SERVICES
    2016-July-29  08:53    Shenzhen Daily

    CHINA on Thursday announced new rules governing ridesharing services, making clear for the first time that they are now legal in a giant market, where Didi Chuxing is at loggerheads with U.S.-based rival Uber.

    China has become the world’s largest online car-hailing market, Vice Transport Minister Liu Xiaoming told a briefing.

    “The legitimacy of Internet ride-booking services is clarified” in new regulations on taxi industry reforms and regulations on car-hailing apps, Liu said.

    Didi Chuxing said it was “the first time” any government had legalized online car-booking services at the national level, hailing the move as a “milestone.”

    China’s stance on the sector had been ambivalent because while the apps have won public support, they threaten old-style taxis, which often generate income for local authorities, and have been met with protests by cab drivers.

    The services have been banned in some cities.

    Liu said the new rules will support the development of online car-booking platforms, adding that private cars were encouraged to provide ridesharing services to “promote the sharing economy” and “ease traffic jams in cities and reduce air pollution.”

    The new rules, which will take effect Nov. 1, say that private cars can be designated car-hailing cars after a certain procedure. The cars must meet the country’s criteria on vehicles, having no more than seven seats and being installed with satellite positioning and emergency alarm devices. Provinces where ridesharing apps are registered can issue them with a license valid nationwide.

    The private cars are required to stop offering rides on car-hailing services after eight years and they will be forced to retire after running 600,000 kilometers. Provincial governments can make detailed plans to fit their respective local situations.

    Service prices are to remain market-driven unless the Central Government feels it is necessary to define pricing instructions.

    Drivers who provide car-hailing services should have no record of causing traffic casualties, dangerous driving, drug-using, drink-driving or violent crimes.

    Drivers can sign different types of labor contracts and agreements with car-hailing platform companies according to their times of work and frequency in using the apps, which will benefit part-time drivers.

    Car-hailing platform companies have to shoulder more responsibilities in securing the interests of both drivers and passengers, arranging rides, setting standards and prices, and choosing drivers.

    “Didi will make an earnest effort to comply with the new rules and adopt its corresponding standards,” Didi Chuxing said in a statement, adding it will apply for the licenses “soon.”

    U.S. giant Uber, which says it operates in more than 60 Chinese cities, also welcomed the regulations.

    (SD-Agencies)

 

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