CHINA TOPIX

03/29/2024 10:04:20 am

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Didi Chuxing, Uber can now Operate Legally in China; new Law to Take Effect in November

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(Photo : Adam Berry/Getty Images) A woman uses the Uber app on a Samsung smartphone in Berlin, Germany. Didi Chuxing and Uber can now operate legally in China.

Days after investors revealed that they want Uber and Didi Chuxing to reach a sort of partnership agreement in China, the country has announced a new law that makes ride-hailing services legal in the country. 

As per the new law, Uber and Didi Chuxing can now legally operate in China and offer their services to the public. In the past, both Uber and Didi Chuxing operated in a legal gray zone resulting in some drivers of the two companies being apprehended by police officials.

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The New York Times reported that the law would take effect on November 1. The law requires drivers of ride-hailing vehicles to have at least three years of driving experience, a license from the local taxi regulator, and no criminal record. Also, vehicles that have more than 600,000 kilometers on the odometer would no longer be allowed to be used to offer ride-hailing services.

While the news about China's new law has been welcomed by Uber and Didi Chuxing, the drivers of both ride-hailing companies are concerned about many things. One of their concerns is the use of licensed cars outside Beijing. Drivers are apparently confused about whether their vehicles are allowed to take fares in other cities.

Another concern is that the income of the drivers has reportedly been cut by nearly half after Didi Chuxing and Uber reduced aids. Drivers are reportedly also worried about the GPS tracking devices that will be installed on the cars because if one is tracked and found to have driven for more than eight hours a day, the driver will be fined and not the companies.

Uber and Didi Chuxing, on the other hand, are happy about their businesses being legal in China. Zhen Liu, the senior vice president of corporate development for Uber's China branch, said that the company would work with local authorities to implement the new regulations. "We welcome the new regulations, which send a clear message of support for ride-sharing and the benefits that it offers riders, drivers, and cities," he said, according to the Los Angeles Times.

Meanwhile, Didi Chuxing has announced that it would begin applying for local licenses. The company also praised the new provision that allows ride-hailing companies to set their prices.

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