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Public weigh in on taxi industry rules

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2015-11-30 09:15Global Times Editor: Li Yan

Majority want car-hailing apps registered as taxi services: gov't

The Ministry of Transport on Saturday posted public opinions it had solicited after publishing draft regulations for the taxi industry on October 10, and a large number of the proposals suggested that online car-hailing apps should be registered as taxi services.

Among 846 proposals about the definition of online car-hailing services, over 50 percent of them suggested that they should be registered as taxi services, as the government has different regulations for private cars and cars providing public services in terms of safety tests and driving skills.

Experts said Sunday that the move was unusual and part of the process of dealing with legal issues concerning the development of China's taxi industry, especially for online services.

The draft regulations, including guidelines deepening reform in the taxi industry and temporary regulations for online car-hailing services, suggested tighter rules for the use of private cars as taxis, and more stringent requirements for drivers of cars used by taxi-hailing apps.

The deadline for the public to submit their opinions on the regulations was November 9.

The results showed that there were 5,008 comments submitted, containing 6,832 proposals.

The proposals covered a wide range of issues, but the areas of greatest interest were whether online car services should be administered by the government and what method should be used; what entry standards should be required for online car-hailing services; what meters and markings online-hailing vehicles should use; and how to regulate those cars' operators.

Some believe the draft regulations could effectively ban private cars from being used by online car-hailing apps.

For example, the regulations state that all private cars must be registered as taxis before being used in online car-hailing services, which means that the registered cars would have to be scrapped after eight years of service.

There were opposing voices, and some said the draft regulations should be rewritten, while others suggested it would be better to let local authorities regulate car-hailing apps according to their own discretion, as urban traffic flows have strong local features.

The ministry also received 1,022 proposals about whether the online car-hailing services should be regulated by the government.

Over 48 percent held the view that the authorities should strengthen supervision of online car-hailing apps to ensure the safety and quality of the services, according to the ministry's website.

And 32 percent of the proposals said the government should not tighten oversight of online car-hailing apps, on the basis that the apps offer a kind of information service as well as transportation.

Zhao Zhanling, legal counsel for the Internet Society of China, said the move could be seen as a way for the ministry to relieve some of the pressure after the drafts met with criticism.

"It is a rare move for the ministry. Results of public feedback are not usually posted in such a comprehensive way," Zhao told the Global Times on Sunday.

The basic principles of the draft regulations are likely to be retained, but there may be compromises in some areas, Zhao said.

"For example, the clause stating online car-hailing services will be seen as taxis will stay, but the one stating that private cars will have to be scrapped after eight years may be discussed further in the next phase."

Meanwhile, the taxi-hailing app industry keeps growing.

US-based car-hailing service provider Uber said during a press conference held in Beijing on Wednesday that China is likely to surpass the US as Uber's largest market by the end of this year, with Chinese passengers completing more daily trips than their US counterparts.

Chinese search engine provider Baidu Inc has invested in Uber while Internet conglomerate Tencent Holdings and e-commerce giant Alibaba Group both hold stakes in Didi Chuxing, the leading car-hailing service provider in China.

Shanghai Qiangsheng Holding Co, a Shanghai-based taxi firm, said on Saturday that it will expand into the online-taxi hailing business.

  

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