China’s government smears private ride-sharing services for their “disorderly expansion and data security issues.”
China’s government has developed its ride-sharing and transport-as-a-service platform called Qiangguo Jiaotong similar to Uber, which translates to “strong nation’s transportation.” This move addressed the issues of “disorderly expansion and data security” in the private ride-sharing industry.
For instance, Chinese ride-sharing giant DiDi had been banned for 18 months from signing up new users due to the illegal collection and use of personal data. As a result, this newly developed platform aims to provide a safer and more regulated alternative for the citizens.
The Qiangguo Jiaotong platform will provide various transportation services for individuals and freight, on land and sea. It will function as a meta-app, connecting to “dozens of online car-hailing capacity companies” and aiming to link with 90% of such operators.
The app will serve as a means for state employees to arrange rides, ensuring that the government rather than private companies handle data.
Additionally, it will also provide transportation services for the elderly. The platform will also integrate with popular mobile payment systems such as WeChat, Alipay, and Douyin, making it more convenient for passengers to pay for rides.
Qiangguo Jiaotong: The Government’s Leverage
China’s command economy operates many government-owned entities, whereas rideshare services are typically private. However, the government has demonstrated its dissatisfaction with the way private platforms have tried to expand their user base and power.
The creation of a national platform offers the government leverage over private companies, as those who continue to act “disorderly” may risk being de-platformed. China has recently authorized the use of Robo-taxis in some cities, and the new app may also implement similar technology.
China’s government often uses its resources to encourage technology businesses that it believes will benefit its economy and security, such as investing in education and industrial parks. This formula has been applied to operating systems and silicon in recent years as well.
