Revised rules on hailing cars put into effect

Updated 2016-12-22 10:07:03 Shanghai Daily

Shanghai has released revised regulations on car-hailing services, which took effect from yesterday.

Some requirements in the draft legislation have been eased, but most of the draft rules released in October remain in place.

One change from the draft is that drivers whose driving licenses are not registered in Shanghai will now be allowed to run a car-hailing business. Previously, only those who had local residency and vehicles with local plates and local licenses could do so.

Minimum wheelbase stipulations have also been relaxed to 2,600 millimeters, from the draft's 2,700 millimeters. The same rules apply to both petrol and new energy cars.

Both drivers and the platforms running their operations are required to make tax declarations to Shanghai's tax authority.

A new clause stipulates that car-hailing drivers will not be allowed to pick up passengers at airports and train stations, and online car-hailing platforms are not permitted to send pick-up orders to airports and rail stations.

Other requirements, such as traffic violation records and those pertaining to GPS and emergency alert devices, are unchanged from the draft.

Car-pooling guidelines have also been relaxed. Drivers providing car-pooling service no longer have to be the owner of the vehicle being used, as the owner's parents, spouse, or children are also deemed to be qualified.

"Some companies and people are already in the business before the new rules, they will need time for the application," said Yang Xiaoxi, deputy director with the city's transportation commission.

Platforms should tighten their own regulations and clear out unqualified vehicles and drivers, he added.

Didi Chuxing, the biggest car-hailing platform in China, said the company was encouraged by improvements in the ride-share rules published.

"Compared to the first proposed drafts, these rules are a significant step toward a more sensible and liberal framework, reflecting input from the public consultation period," Didi said.

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