China Cracks Down on Uber-Like Taxi Apps
Michael A. Katz | | Jan 08, 2015 02:43 PM EST |
(Photo : Reuters) The city of Beijing is cracking down on private cars that use taxi-booking software similar to Uber.
The city of Beijing is cracking down on private cars that use taxi-booking software similar to Uber, local authorities announced.
In China, it's illegal for people to use these apps to turn their cars in to private taxis. And according to the Beijing Transport Law Enforcement Corps, the practice has hurt regular taxi business in the country.
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"We will focus on inspecting illegal taxis using software such as Didi Zhuanche and Yidao Yongche," said the Corps in a press release. "And stiff penalties will be imposed on those found guilty."
Shanghai Daily reports that an illegal driver had been reportedly fined 20,000 yuan ($3,221) and had his car confiscated when he was caught using tax-booking software to pick up passengers at the Beijing Capital International Airport. Software companies that violate the rules could be fined up to 100,000 yuan.
In 2014, several taxi-booking software and car rental companies launched a new service allowing passengers to choose other types of cars rather than taxis only. Didi Zhuanche and Yidao Yongche are the two major China-based taxi-booking apps.
The new taxi apps have generally been welcomed passengers in Beijing as getting an available taxi in the city can be a daunting task.
The Beijinger reports that China's capital has only 66,000 official taxis to serve almost 21 million people. That's only about 15,000 more than in New York City, which serves only 8.4 million residents. However, those numbers will likely stay low as the city tries to wrestle with smog and pollution problems.
Other cities like Shanghai and Chongqing have also cracked down on private cars using taxi-booking apps. Last month, Chongqing received information on a group of private car owners being taught how to use the taxi app of U.S. car-hiring firm Uber for illegal taxi operation, reports Global Times.
Of the 20 private car owners who were trained to become illegal taxi operators, one was identified as an ex-convict with a criminal record of robbery, reported the 21st Century Business Herald.
TagsChina Cracks Down on Uber-Like Taxi Apps, Didi Zhuanche, Yidao Yongche, taxi-booking apps, Uber, Beijing Transport Law Enforcement Corps
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