PRIVATE car drivers offering carpooling services don’t need to apply for a business license or a driver’s license from authorities as long as they are not profit-oriented.

App-based cab drivers, however, do need to get certificates before engaging in cab services, according to the city’s legislative affairs office, which explained the rules regarding app-based cab services that took effect in January.

Carpooling service providers should release their routes in advance to riders and divide the costs or give free rides.

The service provider is restricted from offering ride-sharing services three times a day, and payment, which is limited to the fuel and road fees that are shared by riders and service providers, shouldn’t be 50 percent more than a red cab fare, according to the office.

Yet app-based cab operators, drivers and their vehicles need to get the necessary licenses, such as a business license, driving permit and vehicle business certificate, before engaging in the industry. Traditional cab drivers need to discontinue their certificates before they are eligible to engage in app-based cab services.

By June 7, four app-based cab operators, including Didi, had applied for and received business licenses from Shenzhen’s public transport authority. Operators that fail to get their licenses before the deadline of June 27 will be treated as unlicensed and illegal.

A vehicle business license is valid for eight years and the driver is required to disengage from the service upon expiration.

To ensure safety, the vehicles must be subject to annual checks during the first five years and checks every six months after they have engaged in the service for more than five years.

According to the city’s transport commission, more than 13,753 drivers have participated in the app-based cab test and 2,936 have passed, accounting for 21.3 percent of the test takers.

(Han Ximin)