Uber and rival Didi given green light be Chinese government
Ride booking company Uber and its Chinese rival Didi Chuxing have received permission from the Chinese Government to operate in the country.
To support President Xi Jinping’s vision of a sharing economy, the two firms will come into operation around November, according to Bloomberg reports.
Drivers for ride-hailing apps can't have a criminal record, will have to have three years of experience as a professional driver, and be licensed by a local taxi regulator, according to reports. Drivers also may not operate a vehicle with more than 600,000 kilometres on the clock.
While both companies have been offering their services in China for a number of years, the Chinese government’s recent actions have created a legal framework, ahead of countries in Europe and the US.
Last week, Uber investors called for a "truce" between the two companies. They stated that they are worried that the fight will damage both companies, and reports say, investors between the two companies have talked about a deal.
Uber said in February that it's losing more than $1 billion each year in China in its efforts to win over customers.
SOURCE: [Business Insider]