A strict license plate lottery system was also introduced to curb growing car ownership. Under the system, in which applicants register and wait for their number to be called, the odds for winning are as low as 0.5 percent.
Burgeoning business
Beijing has some 60,000 taxis and more than 4 million private cars. During rush hours, many cars run with only one or two passengers, which is a huge waste. According to calculations, if 10 percent of the city's private cars participate in car-sharing, the roads would be much less crowded with 400,000 fewer cars.
"This city has little capacity to accommodate more private vehicles, which means a great deal of car-pooling services are needed," said Liu Qing, president of Didi Chuxing.
According to a report issued by Forward Business and Intelligence Co., there were more than 300 million registered users and more than 10 million registered drivers on car-hailing platforms including Didi Chuxing and Uber by the end of 2015.
The car-sharing services of Didi have reached more than 300 cities. More than 2 million bookings were recorded through its car-sharing app in a single day.
Problems
Despite their burgeoning business and increasing popularity, ride-sharing companies in China including Didi Chuxing and Uber have not won legitimacy.
Both were summoned by local governments several times in 2015 and told to obey Chinese laws. Law enforcement officials visited Uber's offices in several cities to investigate alleged illegal operations.
Local authorities in many cities tightened their checks on car-hailing services and drivers of private cars faced fines of up to 10,000 yuan ($1,535) for illegal operation around the Spring Festival.
Passengers' insurance is also an obstacle to overcome.
The China Insurance Regulatory Commission said late last year that insurance companies would not cover accidents involving private cars that offer car-hailing services.
"The insurance premium for private cars is much lower than for taxis. If a private car is involved in a traffic accident when providing car-hiring or car-sharing services, the insurance company can refuse to pay the car owner," said Kan Xiaodong, an insurance expert.
Hope
Ride-sharing companies see a slimmer hope of gaining legitimacy and further growth after Chinese ministries vowed to encourage the popular means of transport recently.
A notice released by 10 ministerial-level departments including the National Development and Reform Commission on March 1 said China "encourages orderly development of online car booking and ride-sharing."
The move is part of the nation's drive to encourage green consumption and marks the first time the government has taken a clear, positive stance on ride-sharing in the form of legal documents.
