As the one-year anniversary of the "legalization" of ride-hailing services approaches, it's worth reflecting on how the industry has evolved since July 28 last year when two significant documents were released: "Guidelines for Deepening Reforms and Promoting the Healthy Development of the Taxi Industry" and "Interim Measures for the Administration of Online Ride-Hailing Services." Following this, major cities like Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou began implementing their own versions of these regulations over the past year.
Recently, Guangzhou announced that as of June 8, 2017, they had issued 2,467 licenses for both drivers and vehicles, with another 9,853 applications pending. Similar measures were put in place in cities like Shenzhen and Beijing, where all drivers were required to obtain certification before the grace period ended. This shift has created challenges for both drivers and passengers alike.
For many drivers, the new regulations pose a significant hurdle. Unlike stricter requirements in Beijing or Shanghai, which demand local residency, Guangzhou only asks for a residence permit. However, the real challenge lies in meeting the stringent vehicle standards. One driver noted, "Why does Guangzhou insist on having cars with engines larger than 1.8 liters or 2.0 liters to qualify as ride-hailing vehicles?" He added, "If these standards are followed, around 70% of current vehicles will likely be disqualified." Consequently, many part-time drivers have stopped working altogether. Despite submitting feedback, most remain skeptical about the final version of these regulations.
This tightening of rules has had noticeable effects on availability. During rush hours, particularly in the mornings and evenings, the average wait time for rides in Guangzhou has doubled, with over 40% of requests going unfulfilled. Additionally, the average pickup distance has increased by 35%, reaching over 1.5 kilometers. Nighttime and peak commuting periods see the most severe shortages, especially around transportation hubs like train stations and airports, as well as densely populated areas such as schools and hospitals. Data from Didi shows that the difficulty of finding a taxi in Guangzhou during these times has risen by 13.2% and 7.1% respectively compared to last year, placing the city among the toughest nationwide.
Mr. Xu, a frequent traveler, expressed frustration with the current situation. "After the subway stops running at 11 PM, it's nearly impossible to find a taxi without sharing," he explained. Even calling for help proved futile. "I waited over an hour in line just to hail a cab outside the toll booth. Negotiating fares became inevitable." Mr. Xu even filed a complaint with customer service, only to receive vague assurances that the issue was being addressed.
Drivers themselves face numerous hurdles under the new regime. For instance, Zhang, a seasoned ride-hailing driver, recounted his struggles passing the qualification exams. "The written tests are incredibly tough," he shared. "Not only do we need to pass regional and national exams separately, but the question banks are massive—over 1,000 questions!" He emphasized the difficulty of balancing study sessions with his daily work schedule. Another driver, Gan Ganfu, echoed similar sentiments, mentioning additional topics such as consumer rights laws and safety production acts.
From a broader perspective, the regulatory push also impacts traditional taxi drivers considering career transitions. Mr. Yang, a veteran taxi driver, admitted, "Driving for ride-hailing apps offers better earning potential, especially among younger clients." Having completed his taxi contract, he now plans to switch careers. "Friends who switched report making upwards of 2,500 yuan per day without needing to cruise the streets constantly," he added.
Despite these challenges, the industry remains optimistic about long-term benefits. Enhanced service quality and greater consumer trust could drive growth. However, achieving balance between regulation and accessibility remains key. As cities continue refining their policies, stakeholders hope for solutions that benefit both providers and users alike.
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