Police raid Uber's China offices in licensing row
Uber’s China offices have been raided by police authorities as the result of a state-sanctioned crackdown on "illegal" and "unlicensed" businesses.
The $40bn start-up launched in the booming Chinese market in 2013, but has ruffled the feathers of transport authorities all over the world for its insistence on classifying itself as “information service provider” rather than a transport company, according to International Business Times.
A statement published in Guangzhou Daily newspaper claimed that police, transport and commercial officials were engaging in a “special campaign” against unlicensed and illegal businesses, such as Uber, which merely states it “collects fees on behalf of car rental services and drivers”.
The taskforce said it had “inspected a company which is suspected of organising private cars which are not qualified to provide passenger services, and of not having registered with the commercial authorities”.
As a result, mobile phones were among the items seized from the ride-hailing app’s Guangzhou offices.
An Uber spokesperson told Business Insider: “Uber prides itself on providing efficient and convenient transportation options for riders to get from point to point, helping cities reduce congestion pollution.
“We have maintained open channels of communications and are working closely with local authorities in cooperation."
In the region Uber faces considerable competition from Chinese transport start-ups Didi Dache and Yidao Yongche.