Long-awaited measures to regulate the gray business of car-hire apps may be in the offing with a source saying that a pilot program in Shanghai may be introduced soon.In May, officials in Shanghai said they had set up a working group to cooperate with Didi-Kuaidi, the country’s most popular car-hire app, to roll out a set of regulations for the industry within two months.The person close to Shanghai transport regulators said the government has accepted the standard business model used by major companies, in which vehicles are registered with auto rental companies and drivers are sourced from labor agencies.The dominant industry heavyweight, Didi-Kuaidi, holds four-fifths of the market in China, and its next closest rival, the U.S. company Uber, covers 11.5 percent.The same source said the central government is considering rules for the industry based on the pilot program in Shanghai.For Caixin Online, this is Diana Bates.
