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Shenzhen calls operations of car-hailing app firms 'illegal'

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2015-09-02 08:43Global Times Editor: Li Yan

Shenzhen authorities have warned three major car-hailing app companies in China for what they consider as illegal operations.

The companies authorities summoned to a meeting Monday were Didi Dache, Uber and Yidao.

The Shenzhen municipal transportation authority said base on evidence and current transportation regulations, private cars operating through an online platform for profit and providing transportation services to people are illegal.

It urged the car-hailing app firms to rectify their behavior as soon as possible, reported the Xinhua News Agency.

The transportation department said it is planning to strengthen its supervision over car-hailing app services. It said the three companies will have to submit the names of drivers and their vehicles to the public security department.

According to the Shenzhen Transport Commission, the companies said they will cooperate with the transportation and public security departments. They added they will rectify themselves and provide services according to law.

The local government has also started reforming the taxi sector and will soon release relevant management measures.

In July, eight government departments in Beijing warned the two major players in the car-hailing app industry, Uber and Didi Kuaidi, accusing them of illegally organizing private and rental cars to offer passengers transport services.

The two firms also evaded taxes and illegally sent commercial or spam texts, Beijing authorities said.

The Beijing traffic authority has punished owners of 2,147 private and rental cars engaged in such services in 2015, 1,211 from Didi Zhuanche and 170 from Uber.

  

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