Shenzhen disciplines Uber-like ride hailing services in the city amid unchecked expansion
- T3 Chuxing, Ruqi Chuxing and Caocao Chuxing were among offending platforms that recruited or induced drivers to operate without licenses
- The compliance rate of 12 out of the 16 biggest platforms improved in September compared with the previous month, according to transport ministry data
China’s southern tech hub of Shenzhen is trying to discipline Uber-like services in the city by lecturing ride-hailing platforms on following rules in the latest cat-and-mouse game between Chinese traffic regulators and unlicensed taxis.
The Transport Bureau of Shenzhen Municipality summoned 28 ride-hailing platforms to warn them against cutthroat competition and unlicensed operations as market players strive for expansion after Didi Chuxing was banned from signing up new users and drivers.
T3 Chuxing, Ruqi Chuxing and Caocao Chuxing were among offending platforms that solicited customers offline through “vicious competition” and recruited or induced drivers to operate without licenses, the bureau said in an announcement this week.
The companies were ordered to rectify their violations by taking measures that included purging drivers and vehicles that did not meet standards, ending harmful competition and disorderly expansion, and improving service and safety standards.
Meanwhile, the transport ministry has been making monthly announcements about the compliance status of ride-hailing platforms in 36 major cities, which has increased pressure on local transport authorities to go after unlicensed drivers and vehicles.