Business / Industries

Many ride-hailing car drivers may quit over higher threshold

(Ecns.cn) Updated: 2016-10-14 09:27

Many drivers working in online car hailing services across China's four first-tier cities said they might stop driving after local governments issued higher thresholds for both drivers and vehicles.

According to new draft rules in Beijing, Shanghai, Shenzhen and Guangzhou, drivers providing ride sharing or online taxi services must have a local household registration and their vehicles must meet standards on equipment and engine size. Beijing requires the engine displacement of vehicles to be at least 2.0L or 1.8T.

"I will not drive next month," said Ma Mingliang, a driver working for major ride-sharing platforms Didi and Uber in Beijing. Previously an unlicensed taxi driver in the city's suburbs, Ma said his vehicle cannot meet the requirements and he has no plan to buy a new car to continue the job.

Ma Rui, an official with the city's transportation management bureau, said requirements are in accordance with Beijing's role as the nation's capital, helping improve the city's management and promote coordinated development in Beijing, Tianjin, and Hebei.

Some experts said the number of cars providing online hailing services could plunge as many drivers and vehicles fail to meet requirements. In addition, using better equipped vehicles to provide car hailing services would also raise operating costs, it was added, leading to higher passenger fares.

In future, passengers using online car hailing services could pay 20 to 30 percent more than the cost of metered taxies, according to attendees at a Beijing transport management bureau seminar. Some high-quality vehicles could even charge a 50 percent higher fare, it was noted.

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