China throws up roadblock for taxi-hailing apps like Uber stating drivers must be licensed
The Chinese Ministry of Transport has announced that taxi apps, such as Uber, must use licensed taxi drivers.
The move will present a barrier to Uber in particular as it has been involved in scrapes across the globe, including Germany, Spain and India over its reluctance to use licensed taxi drivers in its service, stating that it provides an internet service rather than a taxi firm.
According to the Washington Post a China Transport Ministry spokesman said: “While we encourage innovation, we prohibit private cars from using platforms to participate in the ‘hired car’ business.”
An Uber spokesman responded: “Uber respects the key role the government plays in ensuring that its citizens have access to safe, affordable and efficient transportation options.
“We appreciate our ongoing conversations with Chinese authorities and believe that consumers and communities will continue to benefit from the progress we have seen.”
Uber faces considerable competion in China from rival taxi-hailing firms Tencent's Didi Dache and Alibabi's Kuaidi Dache.
This comes after Uber earlier this week saw five of its six New York City bases temporarily shut after they refused to grant ride data to the city’s transport regulator.