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The Deepening of the Reform of Regulatory System: Viewing from the New Model of Online Car-hailing Service(No.5, 2018 )


By Ma Yuan & Ma Jun, Research Team on “The Industrial and Enterprise Transformation under the Backdrop of Internet of Everything and Smart Technologies”, DRC

Research report No.5, 2018 (Total 5280)2018-1-9

Abstract: Internet Plus based online car-hailing is a new model of transportation, characterized by targeted and diversified service in a green, intensive, safe and convenient manner. It has enriched people’s travel options, whereas this model of transportation has brought about some regulatory problems. In this regard, the government has basically followed the framework of the traditional franchise system for taxi management, requiring market access permit for relevant platforms, vehicles and drivers. The threshold for market entry was further tightened when local governments developed detailed rules for implementation. Over the past year, the operation of online car-hailing has gradually become standardized, yet businesses feel that the compliance cost is too high, while people complain that it is difficult and expensive to get taxi service. It is suggested that the government should think about the nature of online car-hailing service, reconstruct the regulatory system, and establish the new concept of government-led platform regulation to flesh out the management of vehicles and drivers together with the market. On the one hand, market mechanism could be brought into full play and the outdated regulations could be either cancelled or relaxed, and on the other hand, the government needs to promptly resolve newly emerged problems, strengthen supervision, optimize services, and provide greater convenience for innovation and development.

Key words: reform of regulatory system; online car-hailing service; the sharing economy; new pattern