(ECNS) - China's first pilot program specifically designed for chauffeured car service, known as "Zhuanche," is expected to launch in Shanghai pending approval from the city's transportation authority, China National Radio reported Tuesday.
Unlike car-hailing service apps, which connect passengers with taxi drivers, the Zhuanche service employs car-owners who don't drive taxis for a living. The cost of the service is usually higher than regular taxis, and many cities have considered the service illegal.
The Shanghai municipal transportation authority is likely to approve a "four party agreement" to provide legislative guidance for the Zhuanche service, which has developed quickly in China.
According to the plan, car-renting companies will be allowed to offer the service. However, the companies are expected to first fulfill obligations regarding insurance, driver training and service platform qualifications.
