China allows private vehicles to enter car-hailing market

Updated 2016-07-28 17:08:12

(ECNS) -- After two years of deliberation, China has finally allowed private cars to enter the car-hailing market, but only if they meet a slew of requirements.

The new policy will take effect on November 1.

A regulation released by the Ministry of Transportation on Thursday said that private car drivers must have no records for crime, dangerous driving, drug addiction or drunk driving.

The car should be a passenger vehicle with fewer than seven seats, have GPS and an emergency alarm system, as well as meet all other safety requirements.

In addition, vehicles that have travelled 600,000 kilometers or have been used for eight years even if they didn't reach that range are not qualified for car-hailing services.

The regulation also encourages passengers of car-pooling initiatives to reduce traffic congestion.

China's transport authorities previously forbade private cars from taking passengers for profit by using taxi-hailing apps. App developers were required to rule out private cars from their platforms to ensure all vehicles were owned by taxi or car-hire companies out of concern for passenger safety.

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