Beijing says taxi-hailing app Didi Kuaidi's private car services are 'illegal'

Market leader Didi Kuaidi's private car services have been banned in Beijing in the latest move by Chinese authorities against car-hailing companies.

On Tuesday, the Beijing Municipal Committee of Transportation said that Didi Kuaidi's Zhuanche and Kuaiche services had violated laws preventing private and rental car owners from picking up customers without taxi licenses, according to state news agency Xinhua. Unlike Didi Kuaidi's main taxi-hailing app, both Zhuanche and Kuaiche connect users with private drivers, who may not have a valid taxi license. 

Beijing authorities said that in the last six months, they had discovered more than 200 incidents of the Didi Zhuanche app being used illegally, including 161 incidents of private car owners using the app.

According to a bylaw passed by the State Council and Beijing local taxi regulations, taxi drivers must have a license to charge customers and provide services. Car rental services in Beijing do not provide drivers any qualifications to provide services like a taxi.

Xinhua reported that Beijing authorities will crackdown on illegal rental services, and further regulate the market to maintain the order of public transportation.

Didi Kuaidi said that the company will cooperate with the government to run their business legally and will provide the authorities access to their data on drivers, cars and orders for inspection.