Didi Kuaidi remains the leading car-hailing firm in China. (Photo : www.marsdigest.com)
Chinese ride-hailing app provider Didi Kuaidi is now licensed to run an online private car-booking service in Shanghai after the local government has granted them authorization.
The said authorization requires Didi Kuaidi to register and insure their cars, drivers and passengers. In return, the firm can now operate an Uber-like ride-hailing service in the area without legal doubts.
According to the company, they will also start seeking authorizations from other Chinese cities. China offers over 700 million potential urban commuters that can help drive growth for the ride-hailing sector.
For Didi Kuaidi CEO Cheng Wei, "it's a good start," adding that they are confident that they "will be successful over the country."
The move comes after its rival Uber has also intensified its efforts to win legal legitimacy in the country. According to Uber China officials, they are "actively preparing" materials for its own Shanghai government authorization application, as well as in other cities.
"Uber China is a company run by Chinese and backed by Chinese investors financially. We cooperate with the Chinese government and offer services catering to Chinese demand for transport," Uber spokeswoman Josephine Yin stated.
For Sun Jianping, director of the Shanghai Municipal Transportation Commission, the local government is "open to all car-hailing apps as long as they meet the criteria and comply with Chinese laws and regulations."
Both Uber and Didi Kuaidi are on the race to emerge from the so-called Chinese legal limbo as they both aim to dominate the lucrative market. The two firms have also invested heavily in private car-hailing services as more Chinese are now using their services via smartphone apps.
