China’s transport ministry is drafting rules for online car-hailing services to protect passenger safety by banning the use of private cars. Within this scope, Ministry released a statement on its website and they also gave message about they support traditional taxi companies digital transformation with using mobile and Internet technologies.
Ministry thinks about enforce some regulations of ride sharing apps like Uber and Didi Kuaidi, which using matching riders and private car matching. They planning to limit permits for the services.
Uber face that kind of regulative problems with most of the countries they operated. The other sad thing about Uber is they recently expressed the most important market for Uber outside of United States is China declaration. Uber also planning to expand 100 more cities for operation to next year.
The real reason behind the this decision is Chinese taxi drivers tough situation after ride sharing apps.
A Didi Kuaidi spokesperson said in TechCrunch: “This draft of the proposed regulation is still at the stage of public consultation. We will give responsible feedback and recommendations to the authorities, after studying opinions and responses from experts, industry players, and most importantly passenger and driver communities.”