China has set out a policy for nationwide regulations for on-demand mobility (ODM) services, such as American Uber and its Chinese counterpart Didi Chuxing, giving them legal status. This is a world first, the Vice Minister of Transport Liu Xiaoming claims: many countries either ban the services or allow them to operate in a grey, unregulated area.
The regulations, provisional for now, mandate that:
- ODM companies are responsible for the licensing of fleets and drivers
- ODM companies must buy insurance for passengers and pay taxes
- Cars can no longer offer rides after 600,000km or more than eight years of use
- Drivers must have no criminal record relating to drug or alcohol misuse, driving or violence
- ODM companies must not undercut market prices.
