(Yicai Global) Aug. 17 -- Beijing will not impose a cap on the number of ride-hailing service providers, but will control the total number of ride-hailing vehicles and monitor fluctuations in the fees they charge, an official from the Beijing Municipal Commission of Transport (BMCT) said.

Hailing a car in the city has become difficult because the number of ride-hailing vehicles has declined substantially there after a transition period ended on May 20, ushering in a new policy that only allows local drivers using local cars to offer ride-hailing services in the city, residents said.

"Beijing will open the market without limiting the number of ride-hailing operators, but will strictly review their qualifications in accordance with laws," said Li Song, an official from the BMCT's Transport Management Bureau. "We will monitor and analyze the operation of ride-hailing vehicles every day and control the total number of such vehicles based on their development."

Six ride-hailing group have obtained a license in Beijing with more than 6,000 cars, and it is likely the city's demand can support more. Over 43,000 people had applied to become drivers as of last week.

"Prices of ride-hailing services are adjusted in a market-based manner," said Li. "Regulators will monitor dynamic price changes to determine whether firms adjust them in accordance with the relevant principles."