China’s minister of transport: “Private cars will never operate as commercial cars”

In China, questions abound how the country will respond to the emergence of on-demand ride startups and transportation networks. After rival taxi-hailing startups Didi Dache and Kuaidi Dache merged, it’s not clear how the government might interfere with what’s arguably a monopoly. Uber, while not as popular in China, has nevertheless shown the world the potential and the pitfalls of peer-to-peer ridesharing.

Today Yang Chuanming, China’s Minister of Transport, answered a set of questions from Beijing Times reporters about the nation’s taxi industry. There’s no need to read into his comments too deeply – government officials often stick to the government line in public. But it’s still interesting to hear a Chinese state official chime in on issues that are sweeping the globe.

When asked if if private cars would ever be permitted to operate for commercial use, Yang said, “Never.”

That would seem to indicate a bleak future for peer-to-peer ridesharing in China. But again, nearly all municipal traffic bureaus take an initial hardline stance towards ridesharing.

When asked about carpooling apps (translation ours… use “ridesharing” if you wish), the minister was a bit more affirmative, if evasive of the greater issue. He said (translation ours):

I personally support carpooling. Isn’t it wasteful for one person to occupy a single car? If you don’t have a car, carpooling is of great convenience. Nowadays, there are some vehicles registered for carpooling. Some are for small districts, others are for work units – everyone can easily share a car. I once shared a car with someone else. Of course, if it’s with a friend or acquaintance it’s easier to feel at ease. If it’s a stranger, especially when taking a child, it’s maybe more worrisome.

Reporter: How would one calculate the cost of a ride?

You could split the cost of gas, or you could negotiate. If it’s done at scale, taxes might be collected if necessary.

Didi Dache and Kuaidi Dache are open only to taxi drivers and pro-chauffers – they don’t let average Joes ferry passengers (as UberX typically does). Even so, their merger will likely draw scrutiny from authorities. While the unified firm won’t have a direct monopoly over taxi units, it will have a monopoly over the network that connects passengers to drivers.

Over the past two years, various municipal and state bureaus have shaken their fists at Didi and Kuaidi, but in most cases, the firms continue to operate.

(Source: Beijing Times via Techweb)

Editing by Paul Bischoff, image by D’n’c