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Taxi-hailing app raises $600m

By MU CHEN (China Daily) Updated: 2015-01-16 07:26

Xinhua News Agency, in a report on its microblog, cited the Ministry of Transport as promising a "breakthrough" in creating a "Modern transportation industry" but gave no details of possible changes.

Strikes have been reported in major cities including Nanjing in the east, Chengdu in the west and Shenyang in the northeast.

Drivers cited by media also complained about competition from ride-hailing apps such as Uber that are used by private drivers. The Ministry of Transport announced last week drivers of private cars would be barred from offering services through such apps as a safety measure.

China taxi drivers have protested repeatedly in recent years over conditions in their industry. Most drivers are treated as independent contractors without salary or other benefits. They have no bargaining power with taxi companies that are allowed to set their own rates for what drivers must pay for use of a cab.

The People's Daily warned on Jan 6 that rising use of ride-hailing apps would force changes in the industry.

"The current monopoly has long been criticized," the newspaper said. "The large amount of money that must be handed to taxi companies will have to be gradually reduced.

Baidu confirms investment in online taxi service Uber

Chinese Internet giant Baidu Inc confirmed in December that it is buying a stake in fast-growing international car-hailing service Uber as the pair chase growth in one of the world's largest transportation markets.

The companies didn't disclose how big a stake Baidu is taking, nor how much it is paying for the investment.

Baidu and Uber said they would collaborate to expand Uber's presence in China, where it lags far behind Kuaidi Dache and Didi Dache, two domestic car-hailing apps backed by Baidu's rivals Alibaba Group Holding Ltd and Tencent Holdings Ltd, respectively.

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