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City restricts car-hailing business to drivers with local hukou and cars registered locally

By Zhang Ningning | October 8, 2016, Saturday | Online Edition

ONLY drivers with Shanghai hukou, also known as household residency, and vehicles registered with local car plates will be qualified for car-hailing business in Shanghai, according to draft rules on car-hailing services released by the city government on Saturday.

Another two guidelines, one on car-polling services and one on reform of the city’s taxi industry, were also released to solicit opinions from the public.

On July 28, the country for the first time legalized ride-sharing services. According to the national regulations published by the Ministry of Transportation and six other ministries, local governments are responsible for issuing licenses for car-hailing taxis and car-hailing drivers after evaluating them.

In addition to local car plates, the draft also specified requirements on wheel size for vehicles that are allowed to offer ride-sharing services. Petrol-based cars should have a wheel base of more than 2,700 millimeters, while new energy cars with wheel base of more than 2,650 millimeters.

Drivers' traffic violation records will also be taken into consideration on business application phase. For example people with more than five traffic violations when riding motor vehicles within one year before they apply for a business license will not be allowed into the business. And former taxi drivers who have their licenses revoked in five years before the application would also be refused.

Moreover, more detailed conditions for car-polling services have also been mentioned in a guideline released on Saturday.

The vehicles must also be registered with local car plates with less than seven seats. The cars should be privately owned and insurances for people on the vehicles will also require to be purchased in advance.

The drivers must be the car owners and with at least one year of driving experience. Registration for providing car-polling service with the local transport authority is also needed. 

The guideline also suggested that the service fees should only cover the fuel cost and toll fee.

Beijing and southern Guangdong’s Shenzhen City are also releasing their local drafts on ride-sharing services also on Saturday. The draft in Beijing also requires drivers to be with local hukou and vehicles with local car plates; while Shenzhen said drivers with only local residency permits can also apply for the service.

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