The Beijing municipal government on Wednesday issued China's first operating license to a ride-hailing company after regulations governing the sector came into force in the capital and Shanghai in December.
The move is a major step in the regulation of an industry that has been growing at a breakneck speed but was, for a long time, navigating through regulatory gray areas.
Taxi-hailing company 01zhuanche received the license.
01zhuanche received the first operating license handed out by Beijing. /CFP Photo
Over 10 online car-hailing service providers have applied for certificates with the Beijing Municipal Commission of Transportation, according to local authorities.
The car-sharing market was loosely regulated until last July, when the State Council issued China's very first guidelines to govern the sector.
The car-hailing sector has been gaining momentum in China. /CFP Photo
China’s first-tier cities, such as Beijing and Shanghai, allowed ride-sharing platforms a five-month transitional period for adaptation to the new rules.
On December 21, a fresh round of regulations was introduced, according to which private car drivers offering rides must hold permanent household registration, or hukou, and a locally-registered vehicle, out of safety concerns.
Reducing air pollution and traffic jams are two reasons to encourage the car-hailing sector. /CFP Photo
Last month, local authorities in Beijing issued the first batch of licenses designated for car-hailing app drivers.
Examinees were tested in various areas, including their understanding of traffic laws, knowledge of popular routes in the city and spoken English level. (Source: Xinhua)
