Rules may lead to return of illegal taxis

A NUMBER OF CHINESE CITIES have released their draft plans on regulating car-hailing services, requiring drivers on ride-sharing platforms such as Didi Chuxing have a local household registration, or hukou, to stay in the business. Sconline.com.cn commented on Tuesday:

The proposed harsh restrictions on car-hailing drivers, especially the requirement they have a local hukou, have met bitter criticism. In a recent seminar hosted by Peking University, many leading economists said the higher thresholds for drivers would only serve to resurrect the illegal taxi services that had been hit hard by the emergence of Didi and Uber.

Such concerns are not without foundation. Some have complained that since the local governments issued their draft regulations it has become more difficult to get a ride via car-hailing platforms during rush hours. Worse still, illegal unregistered "taxis drivers", who rip passengers off or refuse to take them if the trip is short, seem to have made a comeback.