Still remember China’s tough draft regulations on the ride-hailing industry that could potentially cut the number of drivers on major platforms like Didi by half? Well, now it’s official. Beijing and Shanghai each rolled out specific regulations for the car-hailing business yesterday.

A majority of requirements from the drafts were kept, including the types of vehicles that can be used and who can drive them. According to the regulations from both cities, drivers on the ride-sharing platforms must have local residency registration (户口). Additionally, the municipalities maintained the requirement that the cars must be registered locally, leaving many of the existing cars that registered in other provinces barred from running.

The blow is extremely significant since both the cities are known for their tremendous migrant populations. Didi’s previous estimate shows that this requirement will slash more than half of its drivers in Beijing and forces out an overwhelming majority of Shanghai drivers from the platform. According to Didi, of the 410 thousand registered drivers in Shanghai, only 10 ten thousand have a Shanghai Hukou.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.