Didi Chuxing, China’s dominant car-sharing company, is gutting its fleet of drivers in Shanghai to comply with the city's new regulations restricting car-sharing platforms to the use of local drivers and locally-registered cars.
The removal of drivers and cars from outside the city is Didi’s first major capitulation to regulators after enjoying years of laissez-faire treatment in China.
Less than 3 per cent of Didi's 410,000 drivers in Shanghai have a local hukou (household registration) that would allow them to continue picking up passengers via the platform, according to the company.
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