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China clears way for legal Uber, Didi Chuxing ride hailing

Saheli August 1, 2016 Business Comments Off on China clears way for legal Uber, Didi Chuxing ride hailing

The Chinese government issued nationwide ride-hailing regulations that will allow companies that include Uber and its Chinese counterpart Didi Chuxing to legally operate in the country.

The new rules, which will take effect Nov. 1, require that companies and their drivers apply for and receive licenses through the government. The rules require drivers to have three years’ experience and have no criminal record. Vehicles with more than 370,000 miles on the odometer are not permitted.

The rules forbid companies from operating below cost, ruling out battles similar to last year’s between Uber and Didi.

Ride-hailing companies in China have been operating in a legal gray area, with some local-level regulatory laws but none that covered the country.

A draft of the regulation would have required ride-hailing companies to work like traditional taxi companies, including government-set fares and other limitations.

China Vice Minister of Transport Liu Xiaoming said regulators decided on the looser rules after getting input from industry stakeholders.

“This was partly in respect of the public’s opinion,” he said.

Both companies said they welcomed the new regulations:

This is a welcome step in a country that has consistently shown itself to be forward-thinking when it comes to innovation,” Uber said.

“We believe the Rules reflect the government’s open-minded regulatory approach to the mobile car-hailing industry in the broader context of the sharing economy,” Didi said.

[Source:- UPI]

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