The Phnom Penh Post

Forcing out-of-towners off the road in China

- Cao Li

FRESH from school with a degree in hotel management, Luo Haichao left his hometown and moved to Beijing to look for a bigger paycheck. He eventually found one in a different sector: driving cars. China has created its own local versions of Uber and Lyft, and the ridehailin­g business is booming.

But now Luo – and potentiall­y tens of thousands of other drivers – will have to get off the road.

Citing safety and other issues, the cities of Beijing and Shanghai said on Wednesday that Chinese ride-hailing companies must stop using out-of-town drivers like Luo and hire only local residents to sit behind the wheel.

“It makes me feel sad,” said Luo, 29, who works for the ride-hailing companies Didi Chuxing and Yidao Yongche and had just spent about $36,000 on a new Volkswagen Passat to give his passengers a more reliable ride. “Without people who come from the outside, Beijing wouldn’t have developed so fast.”

The new rules could deal a significan­t blow to Didi Chuxing, China’s ride-hailing giant, and smaller rivals that must now find new – and probably more expensive – drivers in two major markets. Didi Chuxing had just defeated Uber in an expensive battle for dominance in the world’s largest ride-hailing market, and it enjoys such a high global profile that it counts Apple and other big names among its investors.

In a statement, Didi said the rules represente­d a “significan­t step toward a more sensible and liberal framework”, and were less limiting on pricing, cars and driver restrictio­ns than earlier drafts. A spokeswoma­n declined to comment on how the Beijing and Shanghai residency requiremen­ts for drivers would affect it.

China’s technology boom has put the country on the innovation map and transforme­d the lives of many of its nearly 1.4 billion people. But even the new parts of the Chinese economy depend in part on the same old fuel that powered the country’s rise for decades: cheap labour from the countrysid­e.

Those workers – totalling nearly 280 million, including Luo – leave their farms, villages and smaller cities to seek factory jobs and better lives in the big cities.

“At the bottom of the conflict is tension between powerful vested interests and a new rising class,” said Hu Xingdou, a professor at the Beijing Institute of Technology. The political power of China’s taxi services – which see ride-hailing companies as dangerous rivals – presents a particular­ly strong challenge, he said.

 ?? GILLES SABRIE/THE NEW YORK TIMES ?? A traffic jam at rush hour in Beijing on July 14.
GILLES SABRIE/THE NEW YORK TIMES A traffic jam at rush hour in Beijing on July 14.
 ?? JUSTIN SULLIVAN/ GETTY IMAGES NORTH AMERICA/AFP ?? A sign is posted in front of a Whole Foods store February 17, 2010, in San Rafael, California.
JUSTIN SULLIVAN/ GETTY IMAGES NORTH AMERICA/AFP A sign is posted in front of a Whole Foods store February 17, 2010, in San Rafael, California.

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