Advertisement
The Next Big Thing
Tech

New | China cracks down on domestic taxi apps next after Uber raids

Reading Time:2 minutes
Why you can trust SCMP
Domestic car-hailing services have now come under the scrutiny of Chinese authorities following their actions against Uber. Photo: Simon Song

Chinese authorities have widened a crackdown on car-hailing services with raids on a local office of two homegrown firms, just days after similar actions against two offices of US firm Uber.

Local authorities in Luoyang, Henan province, shut down the offices of Didi Dache and Kuaidi Dache on Monday, mainland business magazine Caijing reported.

The move came was sparked by an altercation between taxi drivers that threatened to get out of hand, the report said, citing a WeChat network used by local drivers.

Advertisement
The action is the first against homegrown car apps companies after two local governments, Guangzhou and Chengdu, raided offices of Uber in the past two weeks.

Mindful of social unrest, China had banned car-hailing apps being used by drivers with no taxi licences in an attempt to regulate the sector and fend off protests from taxi drivers.

Advertisement
Since then, the status of car-hailing companies has been uncertain. They have continued to operate and have become very popular, functioning almost as much as social networking platforms as solutions to transport problems.  

But opposition has also been fierce, with taxi drivers going on strike in multiple Chinese cities in January to protest the loss of business to the car services.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x