Gov't Fails Innovation with Draft Rules for Taxi Industry

Didi-Kuaidi, a mobile application-based taxi service that resulted from the merger of Didi Dache and Kuaidi Dache in February, didn't even have time to celebrate becoming the world's first such company with a license from the government, in this case from the city of Shanghai, on October 8 before the excitement was doused with cold water.

Just two days later, the Ministry of Transport issued a draft regulation for taxis that addressed the emerging private for-hire car industry. The document seems to indicate that the ministry either lacks proper understanding of innovations in online commercial models or is trying to avoid conflict at all costs by maintaining the status quo. Whatever the reason, a plan that should have been about pushing reform forward feels more like something from the Stone Age.