The Ministry of Communications explains how to define online car-hailing

  Online car-hailing, for the purpose of profit, passengers propose travel plans, mileage, time charges, and ride rides, not for profit. Mainly, drivers propose travel plans and share part of the travel costs. Graphic production/Dunning

  On July 28, the "Guiding Opinions on Deepening Reform and Promoting the Healthy Development of the Taxi Industry" and "Interim Measures for the Management of Online Booking Taxi Business Services" two taxi industry reform documents were released. On the implementation of local policies, the definition of online car-hailing and ride-hailing, and the fair competition of taxi online car-hailing, the relevant person of the Ministry of Transport once again made an interpretation yesterday. The relevant person in charge made it clear that the Ministry of Transport will guide local governments to formulate practical plans and set up a transition period for reform.

  On July 28, two taxi industry reform documents – "Guiding Opinions on Deepening Reform and Promoting the Healthy Development of the Taxi Industry" and "Interim Measures for the Management of Online Booking Taxi Business Services" were released, which attracted widespread attention. Yesterday, in the Voice of China special program "Today I am on duty", Zeng Jia, deputy director of the Taxi Management Department of the Transport Services Department of the Ministry of Transport, explained the policy implementation, the definition of ride-sharing, and the development of taxi network ride-hailing competition.

  Hot 1

  How will local policies be implemented after the introduction of the New Deal?

  The Beijing Youth Daily reporter learned that the new regulations have a relatively clear positioning for the development of taxis and the standardized operation of online car-hailing, but the specific implementation details still need to be formulated and clarified by local governments. The interim measures are clear, and the new regulations will be implemented on November 1, 2016. Local governments can formulate specific implementation details according to these measures in light of local conditions.

  Zeng Jia, deputy director of the Taxi Management Department of the Transport Services Department of the Ministry of Transport, said that there is a reason for delegating the specific details of taxi management to the local area. Taxi management belongs to local affairs. The reform adheres to the principle of territorial management, and the city government bears the main responsibility for management. The level of economic and social development of each city is different. The traffic structure, population size, public transportation level, and the number of existing taxis are all different. They can only be determined by the local people’s governments according to their own actual conditions. There is no problem of delegating the power of price setting and quantity control to the local area, because this itself is the power of the local city, and it is necessary for all localities to adapt to local conditions and implement policies according to the city.

  The Ministry of Transport has also made arrangements for the implementation of the policy. First, it held a video and telephone conference on the reform of the taxi industry in conjunction with relevant departments to mobilize and deploy the reform work. Second, it will hold a training course in the near future to publicize and implement the main content and spirit of the two documents to local management departments, clarify the operation methods of the relevant issues in the document, and coordinate with local governments to promote the reform of the taxi industry. Third, it will guide local governments to formulate practical plans and grasp the policy scale. Fourth, it will guide local governments to make a good transition plan for the reform transition period.

  Hot 2

  What is the difference between ride-hailing and ride-hailing?

  Zeng Jia believes that ride-hailing is similar to taxis, providing time and displacement services, which occupy road resources. But ride-hailing makes full use of road and vehicle resources without additional consumption of road resources, which is a typical way for urban transportation to reflect the sharing economy.

  What needs to be made clear is that, first of all, Hitch is generally released by the ride-sharing service provider in advance, or by people who have the same travel route after the passenger’s release, rather than responding according to the passenger’s travel needs. Secondly, Hitch reflects the goodwill and mutual assistance between people, which is obviously different from online ride-hailing operations. Finally, Hitch is not for profit, and part of the travel cost is limited to fuel costs and transportation costs, rather than charging fees through mileage and timing.

  In addition, this reform document makes clear the opinions to encourage support, but all localities should formulate detailed policies based on local actual conditions.

  Hot 3

  How can taxis and ride-hailing companies compete fairly?

  Zeng Jia believes that before the policy was introduced, there were many reasons for the conflict between new and old business models, and the lack of a fair competition market environment was a very important reason.

  There are big differences between online car-hailing and traditional taxis in terms of access standards, price mechanism, vehicle safety, scrap management, insurance system, tax payment, etc. In particular, in order to seize the market, online platform companies seize the market through continuous huge subsidies, which in fact causes unfair competition between the two.

  Therefore, the interim management measures issued clarify the licensing conditions for online car-hailing, and set licensing requirements for platforms, vehicles and personnel. At the same time, it is required that it must not hinder fair competition in the market, must not have unfair price behaviors that disrupt the normal market order at a price lower than the cost, harm the interests of the state or the legitimate rights and interests of other operators, and must not have price violations. These are all to form a level playing field.

  Zeng Jia pointed out that in the long run, to resolve the conflict and opposition between the two sides, it is still necessary to deepen the reform of traditional industries as soon as possible, standardize the development of online car-hailing, and achieve healthy competition and coordinated development between the two business models. First, accelerate the reform of traditional taxis, and eliminate the shortcomings of the system and mechanism by taking measures such as dynamic regulation of operation scale, restrictions on the period of taxi operation rights and free use, reform of the benefit distribution mechanism, and adjustment of the freight rate mechanism. Second, for new business models, by setting business boundaries, segmenting markets, and providing high-quality services, we can achieve differentiated management and gradually deepen integration and development.

  Beijing will formulate detailed rules based on actual conditions

  On July 28, the new regulations on taxi reform at the national level "Guiding Opinions on Deepening Reform and Promoting the Healthy Development of the Taxi Industry" and "Interim Measures for the Management of Online Booking Taxi Business Services" were officially issued. Yesterday, the relevant person in charge of the Beijing Municipal Transportation Commission said that Beijing will resolutely implement the spirit of the two documents, carefully study and understand the content requirements of the documents, and formulate relevant implementation opinions and detailed rules in light of Beijing’s actual situation.

  Yesterday, the relevant person in charge of the Municipal Transportation Commission Transportation Administration introduced that the new regulations on taxi reform have an important guiding and normative role in the transformation and upgrading of Beijing’s taxi industry and the promotion of the healthy development of online taxis. Beijing will resolutely implement the spirit of the two documents, carefully study and understand the content requirements of the documents, and formulate relevant implementation opinions and detailed rules in light of Beijing’s actual conditions, promote integrated development, improve service levels, and meet the travel needs of the people.

  At present, there are no relevant documents on the development of online car-hailing for the time being. However, as early as 2013, the Municipal Transportation Commission issued the "Opinions on Beijing Passenger Car Co-hailing Travel", which made it clear that passenger car co-hailing should follow the basic principles of public welfare co-hailing priority, voluntary mutual assistance, safeguarding legitimate rights and interests, standardizing co-hailing behavior, and strictly prohibiting illegal operations, so as to promote its healthy development.

  Six departments jointly interviewed four online car-hailing companies

  Yesterday morning, a reporter from Beijing Youth Daily learned from the Ministry of Transport that the Ministry of Transport, the Central Network Information Office, the Ministry of Industry and Information Technology, the Ministry of Public Security, the State Administration for Industry and Commerce, and the State Bureau of Letters and Calls have jointly interviewed four online ride-hailing platform companies, including Didi, Uber, Shenzhou, and Yidao, and asked them to clean up vehicles and drivers that do not meet the requirements in accordance with the new regulations.

  Vice Minister of Transport Liu Xiaoming said that the reform and development of the taxi industry is not only a matter of people’s livelihood, but also related to social stability. After the two documents on deepening the reform of the taxi industry are issued, relevant enterprises should carefully compare and study, strictly implement relevant regulations, and rectify existing problems. It is required to strictly abide by relevant laws and regulations, especially in accordance with the requirements of the newly issued two documents on deepening the reform of the taxi industry, earnestly fulfill the main responsibility of enterprises and assume social responsibility, speed up the cleaning up of vehicles and drivers that do not meet the requirements, standardize market operation behavior, operate with integrity in accordance with the law, and seek long-term development.

  After the transition period, relevant functional areas of business will jointly enforce the law, increase the crackdown on illegal operations and other illegal acts, and maintain a good market order in the taxi industry; platform companies that do not implement relevant requirements, violate laws and regulations, and incite disruption of social order will be dealt with in accordance with the law, and the relevant enterprises and their responsible persons will be seriously investigated.

  This group article/reporter of this newspaper, Liu