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Beijing-approved 'Feidi' Taxi App Goes Live

| Aug 19, 2015 09:02 PM EDT

A taxi driver checks his two smartphones for potential customers in Beijing, Feb. 18, 2014.

Feidi, the first taxi-hailing mobile app officially approved by Beijing, went online Tuesday as part of the city’s attempts to regulate its burgeoning transportation sector.

More than 15,000 Beijing taxis are cooperating with the new app, Wang Runnan, technical director of Beijing Qihua Smart Transportation Co., the app's developer, told China Daily on Tuesday.

Wang said that the company will work on expanding the coverage to include all 60,000 taxi drivers operating in the capital.

The app, which is based on Beijing's 96106 unified taxi hotline and allows passengers to call for a taxi immediately or book one in advance, currently has over 1.93 million users, according to Beijing Qihua.

In recent months, commercial "e-hailing" apps such those from Didi Kuaidi, China's biggest mobile car-booking company, and its U.S. counterpart Uber, have been used by more passengers than the hotline.

In the second quarter, Didi Kuaidi had an 82-percent share of China's e-hailing service market, while Uber came in second with around 15, according to a report from e-commerce research firm Yiguan Consultancy Co.

Beijing's Transportation Bureau has summoned Didi Kuaidi and Uber managers for talks several times over the previous three months, most recently on July 23.

According to the bureau, several non-commercial and rental vehicles have allegedly violated passenger-carrying regulations and that some of the drivers were liable for tax evasion. These vehicles were also accused of increasing traffic congestion in the city.

Earlier this year, a Beijing Transportation Bureau law enforcement team found 2,147 illegal vehicles shuttling passengers for profit, with more than 1,200 working through Didi Kuaidi.

"We will provide booking services that provide better safety because passengers will get legitimate taxis with legal operational licenses from the transportation authority," Wang said.

Although it has only been days since going live, Feidi has already received a warm reception from Beijing's taxi drivers.

Feidi will make the e-hailing service sector more competitive, said Wang Zhong, head of the China Taxicab and Livery Association.

"I'll support our e-hailing app, of course, but I'll also use the other apps to add to my profits," taxi Sun Hong told China Daily.

Sun said that she got 17 fares in the past two weeks during Feidi's pilot program, which significantly added to her profits.

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