Uber China has shut down its mobile app as part of its ongoing merger with rival Didi. (Photo : Reuters)
Another China-based Uber office received a visit from police officers as part of the authorities’ widening investigation into the U.S. startup’s operations in the country.
According to an official at the transformation commission of Chengdu City, their visit on Wednesday aims to probe the alleged acts of the taxi-hailing firm allowing private drivers to offer the firm's services.
In January, the government banned private drivers from providing such services via mobile apps.
Last week, police and government authorities raided Uber's office in Guangzhou City, confiscating equipment and phones used in running the business.
Guangzhou's transport commission stated that Uber was allegedly operating without due business registration. Fines for such violations could reach up to 30,000 yuan.
The U.S. startup has been facing various legal and other regulatory challenges as it eyes to secure larger market in its home country and abroad. Uber is currently banned in key areas in India such as New Delhi, Karnataka and Hyberabad.
Meanwhile, the Chengdu local government refused to disclose more information about the investigation.
Asked for a comment, Uber's Chengdu headquarters failed to give any either.
Uber is presently valued at $40 billion and operates in over 250 cities across the globe.
In China, the U.S. firm is faced with a fierce competition as established local apps backed by major investors dominate the market.
The country offers a lucrative market for such taxi-hailing services as the issue of congestion remains a perennial problem, especially in major cities such as Beijing and Shanghai.
