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A Bumpy Ride.doc
A Bumpy Ride
On October 8, 2016, four municipal governments―Beijing, Shanghai, Shenzhen, and Guangzhou―released drafts of detailed regulations to reform the taxi industry and regulate cab hailing apps. In Beijing, Shanghai, and Shenzhen, a rule that requires drivers to have local household registration attracted particularly-wide attention because it means many drivers will lose their jobs.
Driver Voices
When Didi (a Chinese ride-hailing app) drivers went to work on October 14, 2016, their mood was extremely somber, especially compared to two months earlier, when news broke that the profession of rideshare driver would soon be officially recognized.
On July 28, the plan to reform taxi administration and introduce new regulations for cab hailing apps was unveiled, officially recognizing the disruptive technology. According to the plan, qualified private cars can work for Didi if drivers follow certain procedures, and ridesharing is encouraged. The new policies will go into effect on November 1, 2016.
Public reaction to the news was largely positive. However, administrative problems are likely to emerge.
October 14 was the last day to submit opinions on the details of Beijing’s administrative regulations. According to the draft version, drivers cannot work unless their household registration is local―a rule that will leave people like Mr. Liu out of work. Liu is a native of Jining City, Shandong Province, but he has been working in Beijing for more than 10 years. For him, getting local household registration would be an unreachable dream.
More and more people like Mr. Liu now worry about losing their jobs as Didi drivers despite assurances from the app that the situation will work out.
“Less than 10 percent of drivers in my area have local household registrations,”Liu explains. Such numbers resemble the situation in Shanghai, which officially published statistics for its 410,000 online ride-hailing drivers.
Liu spent some 200,000 yuan t
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