China’s government may release regulations on online cars rental on the basis of which local governments can make adjustment.
Soaring development of online cars rental business results in that traditional taxi business gets stuck. At the beginning of last year, Ministry of Transport of the People’s Republic of China decided to lay out some regulations to make sure that online cars renting business can run in an appropriate way, which has attracted attention from all walks of society.
The new regulations are expected to be released in May this year. Local governments can make adjustment according to their specific conditions. But the number of rental cars in some cities may be cut down. Now, the capital city, Beijing, has begun to control the number of rental cars.
Experts of transportation management point out that local government should begin to adjust regulations as soon as they are laid out by the central government.
Rental cars companies in China have also taken action for better responding to new regulations. China DiDi Company decides to lend some money for people to buy new cars on the condition that they need to join DiDi to become employed drivers.
But experts point out that it may not be a good choice for car rental companies to adopt measure before regulations laid out by the central government. Because whether operational agreements made between cars rental companies and drivers can be approved by local governments remains unknown since new regulations have not been released so far. Besides, the number of drivers getting larger now results from governmental subsidies. Once governmental subsidies granted to drivers are cut down, whether they can make profit will be uncertain.
Therefore, if regulations on cars rental business can be released in may as expected, there will be lots of challenges facing local governments and cars rental companies in China.
