(ECNS) -Six central government departments have jointly released a regulation on the use of deposits from users of new forms of mobility.
New mobility solution providers are platforms that use the Internet and other information technology to match supply and demand for cars or bikes, such as booking a taxi online or sharing a ride with other passengers.
The regulation said providers should not collect user deposits as a general principle, but if they do, they need to offer two options. In either option, providers cannot misappropriate deposit funds.
It also said deposits are limited to 100 yuan for shared bikes and 8,000 yuan for ride-hailing services. Operators of platforms need to clarify the conditions for deposit refunds, it was added, and are banned from using deposits in investment and lending.
The “sharing economy” in China has penetrated into many aspects of life, but not without problems. Beijing-based Ofo, the cash-strapped bike-sharing platform, has come under fire for stalling on deposit refunds.