Ride-hailing firms face new rules

• By Shelley Shan / Staff reporter

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The government has proposed amendments allowing stricter regulation of online ride-hailing platforms and lifting the “one vehicle, one fleet” restriction, the Ministry of Transportation and Communications (MOTC) said yesterday.

The ministry said that it has proposed amendments to the Regulations Governing the Application to Operate a Taxi Transportation Service Business (計程車客運服務業申請核准經營辦法) in response to growing demand for online ride-hailing services in the past few years.

The aim is to increase platform operators’ accountability and regulatory oversight while giving taxi drivers greater flexibility in accepting bookings from multiple taxi firms, it said.

Taxis wait for customers outside the Brother Hotel in Taipei on Dec. 20, 2014.

Photo: David Chang, EPA

The amendments would require online ride-hailing platform operators to obtain commercial licenses for taxi services within one year after regulations take effect, the ministry said.

Those who fail to do so could face a maximum fine of NT$25 million (US$769,000) as well as having their business suspended.

Meanwhile, platform operators would be held responsible for maintaining service quality, providing professional training for drivers, ensuring that drivers have third-party liability insurance, and settling disputes between drivers and passengers, the ministry said.

The amendments would include supplementary measures to protect consumers and drivers, the ministry said.

The service fees charged to drivers by taxi companies and platform operators must be approved in advance by the Highway Bureau, it said.

Information about taxi drivers and their vehicles must be properly disclosed when consumers book the services online, the ministry said.

Once a booking is confirmed, drivers must not terminate services without a legitimate reason, it added.

Taxi firms and platform operators must also state in their business plans how they would protect consumer data, respond to service disruptions and defend the ride-hailing systems against cybersecurity threats, the ministry said.

As supplementary measures, the amendments would require taxi firms and platform operators to provide at least three hours of safety and service quality training to drivers every six months.

Taxi firms and platform operators should recall drivers for additional safety training if drivers commit traffic-related offenses twice in six months, the ministry said, adding that drivers can accept bookings again only after they complete the training.

The ministry said taxi drivers would be able to appeal decisions by dispatch service providers to suspend or revoke their right to accept bookings from passengers under the amendments.

The Taiwan Digital Platform Ride-Hailing Workers’ Trade Union and Taipei City Taxi Drivers’ Occupational Union thanked the ministry for the amendments.

“Ride-hailing platforms reap profits, but let drivers and taxi fleets they work with take full responsibility wherever there are traffic accidents or disputes with customers. The amendments clearly state their share of responsibilities,” the associations said in a joint statement.

Local governments should be prepared to implement the new regulations, which could take effect at the end of next month or at the beginning of December, they said.

“They should begin by helping taxi companies and platform operators provide educational training to drivers, listing terms that should be included in the standardized contract between them and drivers, setting up arbitration committees and capping the commission taxi fleets can receive,” the associations said.

Uber said in a statement that while it supports reasonable government oversight, the new regulations should be open to public input for two months, rather than two weeks.

“Before allowing drivers to accept bookings from multiple taxi firms and platform operators, several issues should be resolved first, including responsibilities for suspending drivers across multiple taxi fleets, passenger safety, accident handling and customer complaints,” it said.