China Legalizes Online Car Booking Services
36Kr.com, 7/28/16
China's Ministry of Transport (MOT) and six other government ministries have jointly published the "Preliminary Rules on the Management of Online Car Booking," which effectively legalizes online car booking services. Private cars that meet the necessary requirements can now legally operate in the online car hire market.
The regulations have clarified the following aspects of the online car hire market:
- Cars registered with online car hire platforms must be 7-seaters or less, have a satellite positioning system and emergency alarm system installed, and must also meet the basic safety requirements. Drivers of cars that have met the above requirements can register with their local Public Security Bureau and obtain a Ride-booking Vehicle Transportation License;
- Drivers of online car hire platforms must not have a record of committing any traffic violations or a criminal record;
- Vehicles may now run for 600,000 km or up to 8 years before no longer being eligible to provide car hire services;
- Online car hire platforms will be allowed to sign different kinds of labor agreements with drivers to allow for flexible working relationships;
- The pricing of online car hire services will be determined by the market.
Online car hire platforms will also no longer be required to own the vehicles used. Furthermore, online car hire platforms only need to have their services approved by the local provincial department of the province in which they have registered. Finally, online car hire platforms must be able to guarantee drivers' and passengers' legal rights.
Keywords: car hire app ridesharing taxi booking app regulation Ministry of Transport wireless mobile application
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