Rules required to regulate rising car-sharing business

CAR-SHARING SERVICES provided by companies such as Gofun Chuxing launched by Beijing Shouqi Group and Car2go under the automotive giant Daimler AG, are gaining popularity among young people in mega cities such as Beijing and Shanghai. Beijing News commented on Monday:

The sharing cars, mostly electric vehicles, are ready for use after the registration process has been completed, which takes just a few minutes, and they cost even less than taking a cab. Take for example Gofun, which has 1,100 cars in Beijing with more coming once its application for license plates is approved. Apart from a refundable deposit of 699 yuan ($102), one only has to spend 1 yuan per kilometer and 0.1 yuan per minute for a ride.

In comparison, traditional car-rental services charge on a daily basis - meaning that only long-distance commuters are likely to use them - and they are often expensive.