Strict Rules Could Choke Ride-Hailing Industry, Experts Say

(Beijing) — Tougher rules that limit migrants from offering rides on online ride-hailing services would drive them into the unlicensed "black taxi" market, experts said.

At least 10 major cities, including Beijing and Shanghai, issued draft rules in recent weeks that require drivers registered with online ride-hailing services such as Didi Chuxing and Uber Technologies Inc. to have a local household registration or a residence permit that can be obtained only after paying taxes for years. Vehicles used to pick up passengers must also meet rigid technical standards, the guidelines said.