An experimental model of regulating the sharing economy in China: The case of online car hailing |
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Authors: | Hongzhen Jiang Xiaoyu Zhang |
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Affiliation: | 1. KoGuan Law School, Shanghai Jiao Tong University, Huashan Road 1954, Shanghai 200030, China;2. Administrative Law Research Centre of Chinese Academy of Governance, Changchunqiao Road 6, Beijing 100089, China |
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Abstract: | Online car hailing represents a disruptive innovation model in the sharing economy and requires a new regulatory response. China's attempts to regulate this emerging industry can be considered highly experimental model. To relieve the pressure from offline competitors and to clarify the ambiguous legal status of online car hailing, China currently enforces a strict regulatory scheme through what can be described as a central-local dual system. Questions, however, have arisen regarding the legality, proportionality and effectiveness of this approach. Moreover, the current system's choice for a segmented market strategy heavily impairs the sustainable development of the sharing economy. Therefore, the adoption of Internet-based regulations for online car hailing might create better prospects to establish a fairly competitive market as well as to further boost the ever dynamic Internet sharing economy in China. |
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Keywords: | Sharing economy Uber Online car hailing Experimental regulation Central-local dual system |
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