‘Migrant drivers’ in China risk fines as Uber, Didi clash with the law

Beijing’s traffic. Photo credit: Jonathan Kos-Read.

In China, hundreds of thousands of drivers are today risking fines as they continue to hit the roads for popular ride-hailing apps Uber and Didi Chuxing.

In Beijing and Shanghai, drivers without the residency documentation for those cities can no longer drive for any ride-hailing app as a new law, proposed in October, comes into effect.

Beijing has a five-month grace period for the drivers, but Shanghai’s restrictions begin immediately.

See: The real victims of China’s new ride-hailing rules are not Didi and Uber

Migrant workers from rural areas who move to major cities power much of China’s economy – from the youngsters who assemble iPhones to the guys who deliver your online shopping goodies on their electric trikes.

On the road

Didi has 410,000 drivers in Shanghai, of whom fewer than 10,000 are residents with the proper residency paperwork, called hukou. Now those hundreds of thousands of migrant drivers might be forced out of the ride-hailing business.

“As of now it still takes time to hammer out many details of the implementing rules, and we are in close consultation with Beijing, Shanghai, and other cities and are optimistic about the process,” said a Didi representative to Tech in Asia this afternoon.

Photo montage: Tech in Asia.

“Didi believes the local governments and Didi share a common interest in ensuring a smooth transition while sustaining a friendly environment for the new rideshare industry,” the spokesperson added. Uber has yet to reply.

But this doesn’t look like a “smooth transition” as drivers in Shanghai now face fines – of up to US$1,440 – for continuing to take passengers via Uber or Didi’s app, which are popular with urbanites as they’re cheaper than conventional taxis.

Didi did not specify if it would pay the fine on behalf of its drivers.

Converted from Chinese yuan. Rate: US$1 = RMB 6.95.