Nanjing is reported to become the first city in China to put temporary controls on the number of vehicles that can be hailed online, according to Jiemian (in Chinese), to regulate the sector, protect rights, curb illegal practices and reduce risks in the taxi industry. By stopping the issuance of new licenses, Nanjing will put the brakes on the turf war fought there between Didi and Meituan, and will have a mixed effect on traditional cab drivers.

Nanjing’s local government has issued a document titled “Opinions on Strengthening the Regulation of the Taxi Market”. It states that from April 20, 2018, there will be a temporary block on any new taxi capacity. The PSB’s traffic department will suspend the registration of taxis for online booking and the local branch of the Ministry of Transport will temporarily stop processing taxi licenses.

Traditional taxis will also be impacted as traditional cab drivers will not be able to apply for additional licenses for picking up fares from online hailing platforms, but may benefit from the blocking of new drivers registering as Didi and Meituan drivers.

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Frank Hersey

Frank Hersey is a Beijing-based tech reporter who's been coming to China since 2001. He tries to go beyond the headlines to explain the context and impact of developments in China's tech sector. Get in...