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Shanghai to Stop Accepting New Ride-Hailing Cars

{Editor’s Note: In China’s current economic downturn, people are struggling to find jobs. Many have chosen to work for a ride-hailing service (similar to Uber) or do food delivery (similar to Uber Eats). The flood of people entering such jobs means these industries are becoming fully saturated with labor.}

On July 21, the Shanghai Municipal Transportation Management Bureau issued a notice stating that it will suspend the processing of ride-hailing transportation certificates. Starting from September 20, 2023, no new ride-hailing transportation certificates will be issued. Currently, there are about 76,000 licensed ride-hailing vehicles in Shanghai in addition to about 50,000 taxis.

The move by Shanghai’s government makes Shanghai the third city, after Sanya (Hainan Province) and Changsha (Hunan Province), to halt issuance of new ride-hailing certificates this year. Other cities have issued warnings regarding the risks of the ride-hailing industry, stating that local ride-hailing capacity has reached or nearly reached saturation. These include Jinan (Shandong Province), Suining (Sichuan Province), Wenzhou (Zhejiang Province), Dongguan (Guangdong Province), Linyi (Shandong Province), Kunming (Yunan Province), and Shenzhen (Guangdong Province).

Source: Net Ease, July 22, 2023