• Uber is taking a different approach to its operations in China.

Uber is taking a different approach to its operations in China. (Photo : Reuters)

Police authorities of the southern Chinese city of Guangzhou raided an Uber Technologies, Inc. office on Thursday night, according to a state-run newspaper.

The Guangzhou Daily reported that the police officers have confiscated phones and other equipment from the U.S. startup's office, which is currently accused of running "illegal" business.

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The nighttime raid was also conducted with officials from the municipal traffic commission, the city's public security bureau (PSB) and the Administration for Industry and Commerce (AIC).

The newspaper also stated on Friday that the city officials are conducting further investigation. The raid comes after a report that a company, which the journal revealed as Uber, was "organizing private drivers without operational qualifications to engage in business activities."

However, Xinhua News Agency clarified on Friday that the raid was part of the government's effort to crack down on unauthorized taxi services. Citing a Guangzhou transportation official, the report said that Uber was not a specific target.

An Uber spokeswoman based in Singapore stressed that the company is "cooperating closely with local authorities to continue to offer our service to the residents of Guangzhou."

The ride-hailing company official also stated that Uber is now "operational" in the city.

Uber first started its operation in China in Aug. 2013. Now, the firm's services are being offered in Beijing, Wuhan, Chengdu, Shanghai and Guangzhou.

In Guangzhou, Uber offers UberXL, UberX and UberBlack.

China has been witnessing a fierce competition in its car-hailing market. Recently, e-commerce giants Alibaba and Tencent have also invested in the booming market.