[Week 19, 2015] Local Authorities: Private Cars Offering Rides are Illegal
2015-May-15 Source: Newsgd.com
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Traffic authorities in Guangzhou last week said that private cars offering taxi-service are illegal, according to a Southern Metropolitan Daily report. Local transportation official said such operations will face penalties even if a private vehicle belongs to a company or business platform.

The statement is seen as an official response to the recent investigation on the Uber office in Guangzhou last month which was raided by local authorities following a national debate on the legitimacy of car-hailing apps in China.

The US based company launched taxi-services for more than a year in Guangzhou helping private drivers provide unlicensed taxi rides. According to the Ministry of Transport's regulations covering taxi services, a vehicle must have a permit from traffic authorities for business operations and the driver must be certified to offer taxi services.

The company said that People's Uber is a car-sharing project, which provides a convenient, comfortable, inexpensive and environmentally-friendly travel alternative to its users. Even though some Uber drivers were worried about being caught after the raid, Guangzhou Uber operated its services normally according to staff from Uber Guanghzou.

The China car-hailing market has been growing since 2012. Tencent-backed Didi started car-hailing taxi services and then explored business car services. Shenzhou-based Car Inc., another Chinese car-hailing app started its service based on its original car-renting service.

Uber differentiated itself among several competitors by launching People's Uber, which allowed drivers to join as partners using their private cars.

Editor: Keane
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