Uber China has shut down its mobile app as part of its ongoing merger with rival Didi. (Photo : Reuters)
After earning an accusation from a competitor that is uses "black cabs," Uber China clarified and claimed on Friday that its operations in the country are legal and the services it provides is called "carpooling."
Uber China communication officer Huang Xue stated on Friday that the "People's Uber" service is a carpooling feature, which is different from the known car-booking service. It allows drivers to pick up people using their own vehicles, and both the driver and the passenger share the ride's cost.
Huang added that should the government issue regulations on such services, the firm would operate accordingly.
However, according to market analyst Zhang Xu, the "People's Uber" should also be categorized under the car-booking applications, stating that like Didi Dache and CAR Inc., consumers can book a car through mobile apps.
The Chinese Minstry of Transport released earlier this year an order prompting app developers to limit the vehicles that will be used in automobiles that are owned by taxi or car rental firms to ensure safety.
Huang clarified that only its carpooling services use private vehicles and that its car-booking features employ public ones.
Recently, Uber China's users have been increasing. The statistic can be primarily attributed to the heavily subsidized rides.
Uber founder Travis Kalanick revealed earlier to investors that the firm holds a nearly 50-percent share in China's non-taxi market.
As for Huai Jinpeng, the vice minister of the Ministry of Industry and Information Technology, car-booking apps have indeed made positive effect. However, the market is still lacking of regulatory features, compromising the safety of its consumers.
