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Rumor: China to Issue New Rules Regulating Mobile Car Booking Services

Tencent Tech, 7/10/15

Chinese authorities will soon release new temporary measures regulating mobile car booking services, reports Tencent Tech, citing information from insiders at multiple car booking services. Under the new rules, operators of mobile car booking service platforms will need to meet the following conditions:

1. The service operator must be incorporated.

2. In the area in which the service operates, there must be a fixed place of business with appropriate service capabilities.

3. The mobile platform used for bookings must have suitable information processing and data interchange capabilities. Furthermore, the servers must be located in mainland China.

4. The platform database must be connected to the taxi supervision platform of the transportation management department in all service areas.

5. Operators that support digital payment must sign agreements with a bank or third-party payment processor to provide payment and settlement services.

Furthermore, the regulations stipulate that foreign enterprises must be in compliance with other regulations concerning the international security review of foreign-funded companies. Finally, according to a source, the regulations will require that car booking platforms bear all responsibility for the passenger.

Keywords: car hire app government policy ridesharing taxi booking app regulation wireless

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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