China legalises car hailing services

The legitimacy of car hailing services is still under debate in many countries, apps like Uber and Didi Chuxing now get green light to operate in China to meet with people's travel demands.The Ministry of Transport has released new regulations for car hailing platforms, drivers and cars.According to the regulations, car-hailing operators including Didi Chuxing and Uber must obtain licenses from local authorities to operate.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.Drivers who provide car-hailing services must be licensed by local taxi regulators and should have no record of causing traffic casualties, dangerous driving, drug-using, drink-driving and violent crimes. They should also have at least three years experience behind the wheel.Drivers can sign different types of labour contracts and agreements with car-hailing platform companies according to their times of work and frequency in using the apps.The cars must meet with the country's criteria on vehicles, having no more than seven seats, being installed with satellite positioning and emergency alarm devices.Uber called the new rules a “historic starting point” and hailed China for becoming the first major economy to adopt comprehensive nationwide rules on ride-sharing.Didi Chuxing praised Chinese regulators’ decision to allow ride-share platforms to set their own pricing.Meanwhile, Didi promised it would invest millions of dollars to “accelerate the integration of the online ride-hailing and taxi services through strategic partnerships with regulators, taxi companies and drivers.”The private cars are also required to stop offering rides on car-hailing services after eight years, and they will be forced to retire after running 600,000 kilometers.The regulations will come into effect from 1 November.