Sharing Economy Encountered Legal Quagmire: When Private Cars Entered the Taxi Market
Shi-Peng CAO, Zi-Xin CHEN, Rong-Ze MA, He YAO, Jie YUAN

Abstract
As society continues to advance, technology has spearheaded the transformation of the way we work, live and play. Sharing economy has been developed and spread gradually and then rapidly, but many problems have happened at the same time. The legal quagmire is an important issue; we will take the private cars entering the taxi market as an example to analyze this problem. By comparing Uber and Didi—a kind of “special car”(zhuanchein Chinese) service in Beijing, China—three major legal problems are analyzed: (1) the legal responsibility of the driver, car owner and the company; (2) the labor relationship between the company and the driver ;and (3) insurance issues. Moreover, changes of the Chinese laws governing the sharing economy of private cars in the market are proposed. Similarly, in anticipation of the law changes, modifications for the calling-car apps aiming to avoid the legal quagmire are also proposed.

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