A ride-hailing driver uses three smartphones to receive orders in Shanghai. (WANG GANG / FOR CHINA DAILY)
The Ministry of Transport has urged car-hailing platforms and companies in China to improve operations and management to ensure the sustainable and healthy development of the industry, while providing a safe and sound traveling and working experience for passengers and drivers alike.
The ministry held regulatory talks on Wednesday with about 15 car-hailing platforms, including industry leader Didi.
The ministry said the car-hailing industry has witnessed stable development in recent years following the implementation of improved regulations. There has been a steady growth in the number of authorized vehicles, drivers and orders received. The latest figures show that as of June 30, a total of 318 Chinese platforms and companies had licenses to operate car-hailing businesses, and the number of permits issued to drivers and vehicles touched 5.79 million and 2.43 million respectively. The number of orders reached 763 million in June, a monthly increase of 3.7 percent.
Among major cities, 18 including Hangzhou, Shenzhen and Xiamen have over 80 percent of car-hailing orders executed by authorized drivers and vehicles.
However, there are still some platforms and companies indulging in improper behavior, including randomly altering operation rules, encroaching on the rights and interests of passengers and drivers and disturbing the market order. Such misconducts disrupt the manner in which the industry operates and even leads to safety issues, the ministry said.
During Wednesday's talks, the ministry urged the car-hailing platforms and companies to improve services and avoid unfair competition with their rivals to create a healthier market. The platforms were advised to lower the commission fees they charge from drivers per order.
The ministry said the safety of passengers should be priority and their complaints must be addressed. Also, the platforms and companies should tighten the process of registration of drivers and verification of their vehicles to improve services.
The ministry also urged the platforms and companies to optimize their systems in order to prevent drivers from speeding and working overtime and also to prevent instances of fatigue driving. Drivers, in turn, should be informed of real-time traffic situations and weather conditions to better deal with emergencies.
"The car-hailing industry has become well managed in recent years after the government enforced several regulations. In some cities, authorized drivers and vehicles operate 80 percent of all rides made, while in some places the figure is less than 50 percent," said Zhu Wei, an associate professor at China University of Political Science and Law.
He said that the government should encourage market entities to develop with moderate administrative interventions, while tightening norms to fix problems that exist in the areas of passenger and driver safety, leakage of information and privacy, and monopolizing behaviors.
"On the other hand, the platforms and companies should optimize their algorithms of order dispatching, and be more considerate about drivers' safety and working rights," he added.
