New Regulations For Ride-Share Services in Shanghai

By Jonty Dixon, October 10, 2016

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Have you hailed an Uber only to have your ride turn into a speed race through Shanghai by someone who thinks they're the next Lewis Hamilton?

For those who have worry over who will arrive to pick them up, the government is set to introduce a heap of new regulations for those who use their private cars as a taxi service.

Announced on Saturday, the new rules allow only drivers with Shanghai residency – hukou – and vehicles with Shanghai plates to be able to meet the requirements for the car-hailing industry.

Drivers will also have to show three years of clean driving experience before they will be able to qualify for a license. Factors which determine whether the drivers have a clean record include traffic violations (allowed up to five violations in three years) and background checks into whether the would-be driver has any convictions for drugs, alcohol or violence (automatically barred).

The government has also introduced protocols to regulate the cars too, such as requiring cars to have a minimum of seven seats and fixing GPS data recording devices and emergency alert devices to each car. 

Additional guidelines were also released to change both car-pooling and taxi industries:

Vehicles for car-pooling must be privately owned and have local plates and insurance for people riding must be purchased in advance. Drivers also need to have one year of driving experience and registered vehicles can only provide car-pool services only twice a day.

Taxi (and ride-sharing) companies are 'encouraged' to combine 'traditional and emerging businesses', while stand-alone taxi companies are suggested to set up their own platform for car sharing services.

But with the new increase in safety, there could also be a new increase in price. The merger between Didi and Uber has already shown a price increase and some think that with the new regulations, and most likely fewer vehicles on the street, it will be even more difficult to find a taxi in peak hours, meaning prices will rise.

Beijing and Shenzhen have also issued drafts for ride-sharing services similar to those issued in Shanghai.

Image via Shanghai Daily

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