The city should tighten management over app-based cab operators to regulate fare standards and prevent them from using big data to rip off riders during peak hours, when cab services are in high demand.
At a meeting Monday to discuss the amendments to the management of app-based cabs organized by the Shenzhen Municipal Committee of the CPPCC, the city’s political advisory body, political advisers suggested that the government set price limits to restrict app-based cab operators from randomly adjusting fares based on their data algorithm.
“It is necessary to introduce government-guided prices, which set upper and lower price limits, as a supplement to the market-based mechanism,” said Zhang Bin, a lawyer with Guangdong Zhuojian Law Firm.
“The market-based fares should be controlled within certain limits. As prices beyond the limits are bad for the city’s public transport and consumers’ rights,” said Du Jun, general manager with Shengang Group. Du suggested that the draft rule add more clauses to restrict operators from randomly increasing fares based on an algorithm and being involved in unfair competition that disrupts the market.
The advisers also suggested increasing the severity of the punishments for dropping off riders on the way or making unnecessary detours.
According to the draft regulation, such a violator would face a fine of between 50 yuan (US$7.25) and 200 yuan. However, in the regulation on traditional cabs, violators face fines of between 200 and 2,000 yuan.
“A maximum fine on app-based cab operators of 30,000 yuan is too low and cannot protect the rights of riders,” said Pan Zhengyan, deputy head of the Shenzhen Social Aid Administration.
Wang Xue, a professor at Shenzhen Polytechnic, suggested that the city lower the thresholds for qualifying to be an app-based cab driver, like Beijing, Shanghai and Guangzhou, which cut the requirement for social insurance payments from 12 months to six months.
The city is planning to amend the app-based cab management rules that were passed in 2017. Through the amendments, the new regulation will further regulate and optimize the operation and supervision mechanism of shared-cab operators.
At present, there are 15 active app-based cab operators in Shenzhen, which handle around 400,000 to 500,000 orders a day. The city has issued 50,000 copies of vehicle certificates and 60,000 copies of driver certificates for engaging in shared-cab services.