Is China set to follow Macau’s lead and put an end to the country’s popular ride-sharing industry? According to a report from VOA, that’s exactly what the latest set of laws introduced in China’s biggest cities look likely to do.
While Uber continues its on again, off again battle for government approval in Macau, the situation looks just as dire on the mainland despite online ride-sharing services being formally legalized across the nation in July.
As of next month, city governments will implement their own rules and regulations governing the application of ride-sharing services – and as VOA reports, it doesn’t bode well for the industry.
The regulations include drivers in major cities such as Beijing and Shanghai being required to have permanent household registration, while the cars used must be locally registered sedans boasting “larger than average” interior space – a requirement that local operator Didi Chuxing says “will result in exclusion of large quantities of vehicles but for the higher-end, Audi 4L-level car models way above the cost range of taxi cabs.”
It has been predicted that the car requirements will wipe out between 80 and 90 percent of the current fleet, while Didi also notes that only 10,000 of its 410,000 drivers in Shanghai have permanent household registration.
