Car Ride Sharing Legalized in China

China is already the largest market for ridesharing services, with Uber fighting to gain market share against leader Didi Chuxing. But until now the practice has been quasi-legal at best. That changed on Thursday when the Chinese government ruled that the industry is legal and set guidelines for things like fares and driver employment. Most notably, the government told local authorities to “encourage, support and guide” the industry, according the Associated Press.

“DiDi welcomes the government’s endorsement and encouragement of the industry and China’s emerging sharing economy,” the company said in a statement. “We believe the Rules will usher in a new stage of growth for China’s online ride-booking ecosystem and that DiDi is prepared to meet these new requirements.”

The joint ruling from China’s transportation ministry and other departments still designates most regulation of ridesharing services to local governments. But at the least, companies like Uber hope that their offices won’t be raided by police again, like they were in several cities last year.

Read the full article @ Forbes