Shanghai Draft Taxi Law Opens the Door to Self-Driving Cabs

Shanghai is preparing to give self-driving taxis a place in law, as part of the first full overhaul of the city's taxi rules in three decades.

The draft Shanghai Taxi Regulations, now open for public comment until November 3, say the city will "lawfully and orderly" promote the safe use of autonomous driving technology in the taxi industry. Transport and public security authorities would provide guidance and services under the law.

The draft also calls for using big data, blockchain and artificial intelligence to open up new applications and make taxi services and their management more digital and intelligent. It supports a green, low-carbon shift for the industry and encourages new technologies, new-energy vehicles and new equipment.

The new regulations would replace the city's taxi regulation adopted in 1995, long before smartphone ride-hailing existed. Under the draft, street-hail cabs and app-based ride-hailing cars would be managed as one industry, with the city controlling the total number of vehicles and allocating operating rights based on service quality and reputation, according to local media reports.

For passengers, one of the most notable provisions targets pricing. The draft bans ride-hailing platforms from using big data and algorithms to charge different customers different prices for the same service. Platforms would have to disclose their commission rates and operating rules, and would be barred from taking unreasonable commissions or imposing improper conditions on drivers.

Fares for street-hail taxis would remain under government guidance, while ride-hailing fares would mainly be set by the market, with price ranges or government intervention possible when necessary.

The draft also covers driver qualification exams and licensing, complaint handling and industry self-regulation, and sets penalties for violations such as refusing passengers or abandoning them mid-trip.