Posted 05/20/2015 at 8:58 AM
Posted 2 years ago
The streets of Shanghai, China will soon have a groundbreaking air to them in the form of on-demand taxicabs.
The city’s government website issued their approval to allow taxi-hailing apps and their related car services, making the city of Shanghai the first within China to allow this form of transportation.
Previously, on-demand cars were labeled as ‘black cars’ to denote their unlicensed status.
In Beijing, companies both international like Uber and domestic such as Didi and Kuaidi were slapped with fines after the country’s transportation ministry levied a ban in January of this year and Uber’s offices in Chengdu and Guangzhou were raided under the pretense of ‘routine visits’.
It helps that Shanghai is considered the nation’s litmus test for new commercial developments, and that despite the ban, the amount of mobile on-demand car service app accounts soared to 172 million last year.
While the news is expected to be a boon for Uber, it may help Didi and Kuaidi more.
Both companies, who found their start as Uber clones, are at the mountaintop of the industry within China with a 78 percent share in bookings between them.
Uber’s position? Third, with a dismal eleven percent of all bookings.
The plan goes into effect citywide beginning next month.