The draft rules, published on the website of the Ministry of Transport, said they are aimed at maintaining order by strengthening supervision of online car hailing apps.
A taxi is reflected in a window at the office of taxi-hailing service Uber Inc in Hong Kong, China August 12, 2015. REUTERS/Tyrone Siu
China on Saturday published
draft rules to regulate online car hailing businesses, a booming sector
where U.S. firm Uber Technologies Inc and Chinese rival Didi Kuaidi have
been aggressively competing for market share.
The
draft rules, published on the website of the Ministry of Transport,
said they are aimed at maintaining order by strengthening supervision of
online car hailing apps.
Like in many other
countries, the legality of car hailing services has vexed regulators in
China where the authorities say drivers are operating outside the law.
The
draft rules, which will be open to public feedback, will require
ride-sharing companies to obtain a licence and guarantee a transparent
pricing mechanism.
Drivers will also have to meet
certain qualifications such as driving experience, and those without a
licence will not be allowed to provide services. The number of seats
will be limited to no more than seven in each car.
Uber
and Didi Kuaidi are locked in a turf war in China, investing billions
of dollars to lure in riders with steep discounts and to subsidise the
money earned by drivers.
Uber China said in a statement on Thursday it was preparing documents to apply for a licence.
Didi
Kuaidi, a $16 billion firm backed by Chinese Internet giants Alibaba
Group Holding Ltd and Tencent Holdings Ltd also said on Thursday it had
received a car booking licence for its operations in Shanghai and that
it was seeking more licences from other cities.
Didi
Kuaidi is the dominant ride-hailing app in China, although Uber
recently closed a $1.2 billion deal to enter 100 more Chinese cities in
the next 12 months.
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