China will soon require ridesharing companies to operate more like traditional taxi companies.
The country's Ministry of Transport recently announced draft rules that are aimed at maintaining order by strengthening the supervision of ridesharing apps like Uber.
Under the proposed regulations, ridesharing companies will need to obtain a licence and guarantee a transparent pricing mechanism. They will also need to sign employment contracts with drivers, provide insurance for employees, and share data with the government.
Furthermore, the draft regulations state that city governments could limit the number of vehicles that could offer ridesharing services, as well as regulate the charges of ridesharing services.This is hoped to help reduce traffic congestion, and balance supply and demand, according to the Ministry of Transport.
The draft rules are open to public feedback for a month.
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