Uber is now legal in China, but with strict restrictions

Operators of ride-hailing service Uber need to secure a licence to operate legally by Nov. 1 after the Chinese government has given the pay-to-ride business a green light at a cost of regulation. Under the new law passed Thursday , the Chinese government said it will only allow experienced drivers without criminal records to operate Uber and other ride-hailing services in the country.

Meanwhile, vehicles that already ran 370,000 miles are no longer eligible for Uber use. The Chinese government also requires drivers to install global positioning system devices on their units.

Uber welcomed the new regulations imposed by the Chinese government. Zhen Liu, senior vice president of corporate development of Uber in China said, “This is a welcome step in a country that has consistently shown itself to be forward-thinking when it comes to innovation.”

According to Liu, Uber has been operating in over 60 cities across China.

“We plan launch in another 30 cities in the next few months. By the end of this year, we aim to be in over 100 cities,” he said in a statement.

Uber already has over 1 million drivers serving commuters around 300 cities worldwide in 2015, according to Washington Post.

“In every city where we operate, riders, drivers and city planners embrace the benefits that Uber’s platform offers. We look forward to working with national and local governments to put these regulatory guidelines into practice,” Liu said.

“Within a few short years, ridesharing services like Uber have been embraced by policymakers around the world. From Mexico to Australia to Estonia and now China, services like Uber are delivering benefits to riders looking for more ways to get around, drivers looking for new economic opportunities, and cities looking to manage congestion and extend the reach of public transit. Modern regulations can let these services grow while ensuring public safety and protecting consumers,” he added.

The new law also applies to Uber’s archrival Didi Chuxing, which currently controls the market. The Chinese ride-hailing service is reportedly valued at US$28 billion (AU$37 billion).