Chinese state media: taxi app revolution ‘not as simple as legalizing private-car apps’

Chinese authorities are still kind of on the fence when it comes to whether services like Uber’s People’s Uber and Didi Kuaidi’s Didi Express – ridesharing apps where private-car drivers serve as cabbies – are actually legal. On the books they’re definitely not, but despite some high-profile office raids and other enforcement efforts, the apps are still operating. That has led many to believe that Chinese authorities are still trying to figure out whether they want to move to legalize private-car apps or bring the hammer down for good.

Yesterday, the People’s Daily – an official newspaper of the Chinese Communist Party and often considered the Party’s mouthpiece – published an op-ed piece that may shed some light on where the government’s head is at. And it seems to suggest that the pundits are right – China’s Uber fans will just need to be patient for now.

In many ways, it’s probably good news in the long run. The article recognizes that many people want to see these apps fully legalized, and with good reason. The end of the piece also sounds somewhat hopeful to me, though it certainly suggests private-car apps aren’t on the cusp of legalization:

It’s worth noting that the taxi management revolution is not as simple as legalizing private-car apps. You must understand that merchants are after profit. Right now they’re burning cash to stake their claim of the territory, and it’s like the early days of a flower’s bloom. But as the “flower” of private-car apps unfolds on a bigger scale, the bright colors are likely to fade. So private car drivers and passengers must be reflect rationally and make productive suggestions. Only then can the taxi app revolution proceed with swiftness and stability.

In the internet age, the People’s Daily may not be quite what it once was in terms of being a window into the Party’s inner thoughts. But with it is unlikely that an op-ed on a hotbutton issue like private cars – an issue that has been recently causing major protests – could have been published in the State-run paper without careful consideration. And the article’s measured tone suggests what many have already said: that authorities are still mulling their options. Presumably, many recognize the consumer convenience and the market opportunities inherent in letting private car apps operate freely. But as the People’s Daily article points out, the government also needs to consider the market impact, the safety implications, how laws governing private-car apps could be effectively enforced, etc.

In other words: it may still be quite a while before we know how China’s going to come down on private-car ridesharing apps.