BEIJING: China has published draft rules to regulate online car hailing businesses to maintain order by strengthening supervision of online car hailing apps.
The car hailing business is a booming sector where US firm Uber tehnologies Inc and Chinese rival Didi Kuaidi are in tough competition.
Like in many other countries, the legality of car hailing services has vexed regulators in China where the authorities say drivers are operating outside the law.
The draft rules, which will be open to public feedback, will require ride-sharing companies to obtain a license and guarantee a transparent pricing mechanism.
Drivers will also have to meet certain qualifications such as driving experience, and those without a license will not be allowed to provide services. The number of seats will be limited to no more than seven in each car.
Uber and Didi Kuaidi are locked in a turf war in China, investing billions of dollars to lure in riders with steep discounts and to subsidize the money earned by drivers.
