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In recent news, the legalization of ride-hailing services in China is reaching its first anniversary. On July 28 last year, two key documents were released: "Guiding Opinions on Deepening Reform and Promoting the Healthy Development of the Taxi Industry" and "Interim Measures for the Administration of Online Appointment of Taxi Operating Services." Shortly after, local governments, including Beijing, Shenzhen, and Guangzhou, introduced their own regulations. Some cities provided a grace period for drivers to adapt to the new rules. As of now, these new policies have been fully implemented in major cities like Guangzhou, Shenzhen, and Hangzhou.
According to the Guangzhou Municipal Communications Commission, as of June 8, 2017, 2,467 driver licenses had been issued, and 9,853 applications for vehicle-related permits were received, with 2,676 licenses issued. In cities like Shenzhen and Beijing, it has become mandatory for all drivers to hold valid certifications after the grace period ended.
With the introduction of stricter regulations, many drivers have had to step back from the platform. This has raised questions about how to adapt and evolve in this changing environment. Meanwhile, ride-hailing platforms are working to improve their services while also dealing with the challenges of growth. Journalists from Southern Report interviewed drivers, passengers, and officials to understand the real impact of these changes this year.
One common sentiment among drivers is frustration. “I can't just call a car whenever I want,†said one driver. Compared to cities like Beijing and Shanghai, which require local household registration (hukou), Guangzhou has relatively lenient requirements—only needing a residence permit. However, the main barrier remains the vehicle itself.
“Why does Guangzhou require a car with a 1.8T or 2.0L engine to qualify as a ride-hailing vehicle?†asked a driver. After reviewing the local standards, he estimated that over 70% of current vehicles would be eliminated. Many drivers have shared similar concerns in WeChat groups, with some even quitting the business. While some expressed opinions, most remain skeptical about the final regulations.
Reports suggest that during peak hours, the average waiting time for rides in Guangzhou has doubled, and over 40% of requests go unfulfilled. The distance and time required for pickups have also increased significantly. According to incomplete data, the average waiting distance has risen by 35%, reaching over 1.5 kilometers.
From a time perspective, the lack of availability at night and during rush hours is most noticeable. From a location standpoint, transportation hubs like train stations, airports, and high-traffic areas such as hospitals and schools face the greatest difficulty in securing a taxi. Data from Didi shows that the difficulty of finding a taxi in Guangzhou during morning and evening peaks and at night has increased by 13.2% and 7.1% respectively, ranking among the highest in the country.
Mr. Xu, a frequent traveler, told reporters that after midnight, subways stop running, and taxis often require carpooling. “Even if I waited over an hour in line, the driver might pick up someone outside the toll booth before me. Negotiating was the only way to get a ride.†He called customer service to complain, but the issue remained unresolved.
Similarly, certain areas in Guangzhou, such as City Road, Baiyun New City, Jiangnan West, and Shangxiajiu, are known for being particularly difficult for taxi services. During peak hours, the demand for taxis far exceeds supply. Without a proper service evaluation system, drivers don’t seem to care much about passenger feedback.
Another driver, Master Zhang, struggled through the certification process. “The written exam was really tough. I had to take regional and national subjects separately. I passed the regional part on the first try, but the national subject took three attempts. I finally got 80 points to pass.†He found the practical test especially challenging, as it involved manual parking, which he hadn’t done in a long time.
“I had to retake the test three times because I kept failing the manual parking part,†he said. Another driver, Gan Ganfu, mentioned that the review process was extremely time-consuming. With over 1,000 questions in the question bank, it was hard to study after work. Additionally, the test included topics like the Consumer Rights Act and the Safe Production Law.
According to the "Guangzhou City Network Car Drivers Qualification Regional Subjects Examination Outline," the first major exam covers basic knowledge such as local policies, geographic traffic, service norms, operational safety, and communication skills. The second part assesses practical abilities, including vehicle safety checks, operational skills, and driving proficiency.
Some taxi drivers are considering switching careers. “To be honest, driving a car can make money, especially with younger users who prefer ride-hailing,†said Master Yang. After his contract with a taxi company expired, he had to buy a car to continue working. “A friend changed jobs and now works as a full-time driver, earning around 2,500 yuan a day without having to drive on the road.â€
“In short, the job is easier and more profitable,†Master Yang added.
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