Electronic enthusiasts at eight o’clock in the morning: The " legalization" of ride-hailing services is now approaching its one-year anniversary. On July 28 of last year, two documents were issued: "Guiding Opinions on Deepening Reform and Promoting the Healthy Development of the Taxi Industry" and "Interim Measures for the Administration of Online Appointment of Taxi Operating Services." Following that, Beijing, Shanghai, Guangzhou, and Shenzhen released their respective local regulations around the same time at the end of last year. Some cities provided a grace period of several months for ride-hailing drivers to transition to licensed professionals. As of now, the local regulations for ride-hailing services have been officially implemented in cities such as Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou.
Recently, the Guangzhou Municipal Transport Commission announced that as of June 8, 2017, Guangzhou had issued 2,467 licenses for both vehicles and drivers, with 9,853 applications received for vehicle-related licenses and 2,676 issued. Similar announcements were made in Shenzhen and Beijing, emphasizing that all drivers must be certified to operate legally after the grace period ends.
In the face of these new entry barriers, some practitioners have decided to leave the ride-hailing industry, prompting discussions on how to adapt. On the other hand, platforms like Didi are not only improving their services but also navigating the challenges of development. Southern reporters spoke with ride-hailing drivers, taxi drivers, and the general public to gain insights into how these changes are impacting the industry this year.
"I Can't Just Jump in Whenever I Want."
Compared to cities like Beijing and Shanghai, which require local residency permits for drivers, Guangzhou has slightly more relaxed requirements, allowing drivers with residence permits to qualify. However, the real challenge lies in the vehicle requirements.
"Why does Guangzhou require cars with engines of 1.8 liters or larger to be eligible for ride-hailing services?" A driver questioned the standards set by the local regulations. "If we follow this rule, more than 70% of cars on the road would be disqualified." Many ride-hailing drivers have mentioned in WeChat groups that part-time drivers are gradually ceasing operations. Although some have voiced their concerns, many remain skeptical about the final version of these regulations.
According to reports, during peak hours in the morning and evening, the average wait time for calls from Guangzhou residents has doubled, with over 40% of requests going unanswered. Additionally, the distance and time required for pickups have increased significantly. Incomplete statistics show that the average wait distance has increased by 35%, surpassing 1.5 kilometers.
From a temporal standpoint, the shortage of capacity is most evident during late-night hours and commuting peaks. Geographically, train stations, airports, and other transportation hubs, as well as areas like schools and hospitals, are the most challenging locations for taxis. According to Didi's data, the difficulty of hailing a taxi in Guangzhou during morning and evening peaks and at night has increased by 13.2% and 7.1%, respectively, compared to the same period last year, placing it among the top three nationwide in terms of difficulty.
Mr. Xu, a businessman who frequently travels, shared with the Southern Reporter that the subway stops running after 11 p.m., leaving taxis as the primary option. "Even if I waited in line for over an hour, the driver would often go outside the toll booth to pick up passengers. Unless you negotiate the fare upfront, it's nearly impossible to find a ride," Mr. Xu explained. He even complained to the taxi customer service, but received no resolution.
Similarly, from a regional perspective, areas like Guangzhou City Road, Baiyun New City, Jiangnan West, and Shangxiajiu are the most challenging for taxis. During the peak hours of 5 to 6 p.m., when demand is highest and drivers are transitioning shifts, the supply is insufficient. Without a service evaluation system, drivers are less concerned about passenger feedback.
"The Driver's Sigh and Attempts"
Master Zhang, a veteran ride-hailing driver, has failed the exam three times. "The written test is extremely difficult. I have to take separate exams for regional and national subjects. Luckily, I passed the regional exam on my first attempt, but the national subject has been a struggle, failing twice so far. The last time I scored 80 points and passed," Master Zhang told the Southern Reporter. Passing the first level is tough enough, but the practical test involves operating a vehicle that hasn't been driven in years. He has failed this section three times in a row.
"The preparation time is too lengthy. There are over 1,000 questions in the question bank. I work during the day and can only study at night. It’s quite a challenge at my age." Another veteran ride-hailing driver, Gan Ganfu, added that besides English, the exams cover the "Consumer Rights Protection Law" and the "Occupational Safety and Health Law."
Nan Du reporters learned from the "Guangzhou City Ride-Hailing Driver Qualification Regional Subject Examination Outline" that the first major exam covers basic knowledge including: Guangzhou-specific policies, regulations, and rules; geographical and traffic overviews; service norms; operational safety knowledge; language communication skills; and other relevant knowledge such as industry management policies, regulations, and rules. The second major exam focuses on application capabilities, including vehicle safety inspections, operational service skills, and vehicle driving abilities.
In turn, some taxi drivers are considering switching careers. "Truthfully, ride-hailing can be more profitable since younger users prefer using ride-hailing apps," said taxi driver Yang. After his contract with the taxi company ended, he purchased a car to become a ride-hailing driver. "A friend of mine found a specialized role and quit his job. Once he secured a client, he could make 2,500 yuan a day without having to drive along fixed routes," Master Yang told the Nan Du reporter.
"In short, it means shorter working hours and higher earnings," Master Yang concluded.
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