China issues national level rules regulating online taxi reservations services | Practical Law

China issues national level rules regulating online taxi reservations services | Practical Law

The MOT has issued interim measures to govern China's burgeoning online taxi reservations industry. The new measures regulate online taxi reservations platforms, vehicles and drivers.

China issues national level rules regulating online taxi reservations services

Practical Law UK Legal Update 6-631-7405 (Approx. 3 pages)

China issues national level rules regulating online taxi reservations services

by Practical Law China
Published on 01 Aug 2016China
The MOT has issued interim measures to govern China's burgeoning online taxi reservations industry. The new measures regulate online taxi reservations platforms, vehicles and drivers.
On 27 July 2016, the Ministry of Transport (MOT) issued the Interim Measures on the Administration of Online Taxi Reservation Business Services (网络预约出租汽车经营服务管理暂行办法), which will take effect from 1 November 2016. The interim measures represent China's first national level rules that aim to regulate the online taxi reservations industry.
The interim measures require online taxi reservations platforms to:
  • Possess legal person status, technical capacity and safety and security mechanisms (Article 5).
  • Maintain servers in China (Article 5).
  • Provide database access to and cooperate with government authorities (Articles 5 and 27).
  • Obtain a Network Taxi Reservations Operating Licence (网络预约出租汽车经营许可证) (Article 8).
  • Complete record-filing procedures with the relevant departments in charge under the Ministry of Industry and Information Technology (MIIT) and Ministry of Public Security (MPS) (Article 10).
  • Conclude full-time labour contracts or part-time services agreements with drivers, depending on the length and frequency of the drivers' services (Article 18).
  • Publish key information on the identification of vehicles and drivers (Article 19).
  • Reasonably determine pricing, and provide valid taxi receipts to passengers (Article 20).
  • Operate within a specified and government-approved territory (Article 22).
  • Protect the personal data of drivers, service users and passengers (Article 26).
The interim measures require vehicles used in providing online taxi services to:
  • Be less than eight-year-old or have logged less than 600,000 kilometers (Article 39).
  • Have:
    • seating capacity for seven passengers or less;
    • satellite positioning and emergency alarm devices; and
    • operating safety standards.
      (Article 12.)
  • Obtain a Network Reservations taxi Transport Permit (网络预约出租汽车运输证), except as otherwise required under local rules (Article 13).
The interim measures require vehicle drivers to:
  • Have a valid driver’s licence and at least three years' driving experience (Article 14).
  • Not have a record of violent crimes, criminal traffic accidents, drug abuse or drunk driving, or a 12-point record during the most recent three administrative cycles (Article 14).
  • Obtain a Network Reservations Taxi Driver’s Licence (网络预约出租汽车驾驶员证) (Article 15).
Source: MOT website: Interim Measures on the Administration of Online Taxi Reservation Business Services (网络预约出租汽车经营服务管理暂行办法)