China has laid out new rules that will legalize ride-hailing apps in a move welcomed by the country's two largest players, Didi Chuxing and Uber.
Some of the key points outlined by the Chinese government are:
- Drivers must have a full license and three years' driving experience as well as no violent criminal record or driving offences
- Data protection for users
- User data must be stored and used on mainland China and should be kept for a minimum of two years
- Drivers must sign a "labor contract" with the ride-hailing services which gives them "rights and obligations"
- Cars used for rides cannot be more than eight years old or have done over 600,000 kilometers
The rules leave some room for local authorities to set terms such as pricing limits.
Ride-hailing apps have fast become a booming and emerging industry, but often Uber in particular has run into regulatory headwinds in a number of countries around the world.