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November 15, 2016

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Home » City specials » Hangzhou

Cab-hailing drivers to face tighter scrutiny

By Wu Huixin | November 15, 2016, Tuesday | Print Edition

REGULATION of the cab-hailing business ratcheted up last week as the Hangzhou government announced that drivers in the industry will be required to obtain an official qualification license by the end of February.

That will require passing national and local certification examinations, according to the Hangzhou Transportation Bureau. Cars used in cab-hailing will also have to pass an official inspection.

China’s Ministry of Transport last week released the national version of the exam. It tests knowledge of motoring laws and certain personal qualifications. People who score 80 points or higher on the 60-minute test will be deemed qualified.

That’s only one part of the hurdle. Cab-hailing drivers will also need score 70 or above on the Hangzhou municipal exam, which takes 30 minutes and contains questions related to local rules of the road. The government said it is prepared to handle up to 600 candidates a day.

There is no limit on how many times failing candidates can retake the exam.

Drivers who already hold mainstream cab licenses will be required to sit only for the local exam. Out-of-town drivers who hold cab-hailing licenses from other cites can also skip the national exam.

Once the four-month grace period is over in March, Hangzhou officials said they will launch a major crackdown on unlicensed cabs and punish violators.

Many cabbies express confidence about passing the exam, though most don’t seem aware of what it entails.

“Driving experience is indispensable to getting the license,” Uber driver Fang Genyong told Shanghai Daily. “I don’t think the exam will be that strict. It is just an official means of controlling the market.”

The exams and vehicle inspection requirements come on the heels of other regulations governing the industry. Earlier, the Hangzhou government unveiled tighter rules that came into effect this month. They included a requirement that drivers either must have Hangzhou permanent residency permits or have held a temporary residency permit for at least six months. In addition, they must show proof that they have been licensed drivers for at least three years.

“The new rules account for 65 percent of the local exam,” said Gu Jianxin of Hangzhou Transportation Bureau. “The whole exam only contains 40 questions and is much simpler than the national version.”

The government is requiring that companies operating in the cab-hailing industry must have professional security management staff and must cooperate with governmental departments in inspections and supervision. In addition, they must ensure that every cab is covered by insurance, and passengers are to be compensated first in the event of any accident.

At the same time, channels for lodging complaints against cab-hailing services will be established. Companies in the business must provide 24-hour staff to handle hotlines and address complaints. All complaints must be handled within five days.

In addition, app-hailed cabs must log accurate GPS data and link that with the government’s platform. Anyone found violating the rules will be suspended from business.

Hangzhou’s effort to regulate cab-hailing services has triggered ongoing public discussion.

Last month, a Shanghai Daily’s reporter recounted how she tried unsuccessfully to hail a mainstream taxi at West Lake, with many empty cabs passing her by.

Since then, transportation officials have stepped up surveillance of taxi services at popular scenic areas, threatening to revoke the licenses of taxis that don’t play fair.

Last week, the same reporter tried to hail a taxi near West Lake and easily found a ride. And the cost wasn’t inflated beyond the usual metered fare.

“Local authorities have been keeping watch on us in recent days,” said a taxi driver surnamed Li. “At present, few cabbies dare to behave like they did before.”

The financial incentive of offering private cars for ride pick-ups fueled an army of Uber and Didi Kuaidi drivers in 2014. Ride-hailing has been popular with passengers because it’s usually cheaper than mainstream taxis.

However, some advantages of cab-hailing services are beginning to decline as app companies reduce the subsidies they have been paying to drivers and as government regulations begin to bite.

“I can clearly sense that the mainstream cab market is recovering, and monthly income is getting back to former levels,” said Li. “At the beginning of this year, I was going to give up taxi driving because I wasn’t making much money. I’m glad now that I stuck it out.”

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