China's Ministry of Transport warned against private cars planning to take passengers through taxi-hailing apps and software. Local authorities have already started to crack down on these unlicensed drivers posing as legitimate taxi drivers.
The ministry views the situation from the lens of public safety. App developers are now asked to check and monitor the cars being registered on their platforms. They are asked to rule out private cars from their platforms completely so that vehicles registered on these apps can be ensured to be owned by legal taxi or car rental companies.
"Every limousine app company should abide by transport market rules, take their responsibilities seriously, and ban private cars from operating on their platform," the Ministry of Transport released in a statement late on Thursday.
"This will allow passengers who use these services to travel at ease," the statement further reads.
Under Chinese law, a private car owner cannot seek profit by taking passengers; however, many have become attracted to the possibility by tapping into the power of taxi-hailing apps.
Back in December, Shanghai already detained 12 drivers utilizing the app Didi Dache to take passengers. Drivers were fined 10,000 yuan each.
Unlicensed drivers were also faced with tougher regulations since then. Even though there is some public discontent over the government's ruling, citing China's lack of innovation and modernity, the government remains firm on its decision to uphold the law.
The government also claimed that even though it encourages innovation and wants businesses to thrive, all these must be done in accordance to the country's law.