(ECNS) -- A new regulation on private cars operating via an online for-profit platform might be released this month according to reports, citing an insider source.
In 2014, several car rental and software companies launched Zhuanche, a car-for-hire service that allows passengers to hire private vehicles other than taxis.
Based on current transportation regulations, private cars operating through an online for-profit platform providing transportation services to people are illegal.
The new regulation, drawn up by several ministries, calls on private cars to be registered as operating vehicles, if owners want to offer taxi services.
Private car owners may be reluctant to get involved with Zhuanche, industry experts said, as service life will be limited to no more than eight years after they register as operating vehicles.
Another important part of the new regulation states that the price of private car services should be fixed at 50 percent higher than taxis.
However, the report has faced criticism from an unnamed department in the nation's transportation ministry, calling it "not accurate; a large part of contents have been changed."
