Ride-hailing rules boost users’ safety
China’s online ride-hailing business has entered a more regulated phase in which platforms, vehicles and drivers are registered with local governments for better public security and passenger safety, despite the companies’ past troubles.
A total of 73 cities had released administrative implementation details for the internet ride-hailing sector by March 17, according to the Ministry of Transport.
Each of the cities asked the service providers for registration of their local operation, vehicles and drivers, and the majority of city governments now require both the vehicles and drivers to be locals.
About 40 cities have announced a wheelbase requirement for vehicles and gave suggested prices for service. The city governments usually give months for the companies to adjust their operations to meet new requirements.
Major platform operators, including Shouqi Limousine and Chauffeur, Shenzhou Zhuanche and Didi Chuxing, have made their registrations accordingly and received permits in some cities.
“The government regulations are focusing on the consumers’ rights and safety, because local vehicles are well managed and local drivers are well supervised,” Wei Dong, CEO of Shouqi Limousine and Chauffeur, said.
“For example, a Beijing driver in a Beijing-plated car could be easily identified for the sake of public security. But it’ll be much harder to identify those from adjacent provinces, and vice versa.”
While some drivers and cars are still in the process of registration, or have already failed to meet the requirements, Didi Chuxing saw a decline in the number of the online drivers ready to take orders.
Didi Chuxing’s senior product director Luo Wen told local media that about 25 percent of available drivers on the platform were gone as of February.
Industrial insiders familiar with the business said those drivers who have stopped serving are mostly those from other cities or provinces. For example, Hebei residents frequently drove Hebei-plated cars to Beijing and took online hailing orders.
By contrast, Shenzhou Zhuanche ran business as usual without encountering such issues, as the company has long insisted on local vehicles and local drivers from the very beginning, according to the person in charge of public relations at Ucar Inc, operator of Shenzhou Zhuanche.
Wei at Shouqi said: “Beijing residents are making their own contributions to the environment by driving less and buying fewer cars, and the vehicles and fuels sold in Beijing are in line with the National V standard to reduce air pollution.
“That would be unfair if residents from other provinces were allowed to use their cars to pick up guests in Beijing. Because they are not participating in the car plate lottery, and are driving National IV or III standard cars, emitting more waste.”
Some online ride-hailing service users found the mobile apps frequently showed messages requesting increased charges to motivate drivers to take orders, especially for short trips.