China Bans Uber-Style Taxi Apps Nationwide Citing Passenger Safety Concerns
Reports say that the Ministry of Transport in China has announced a ban for a nationwide use of the taxi apps for private cars that were styles in the lines of Uber. The ministry cited the reason as concerns for passenger safety.
Xinhua the state-run news agency of China reported that the ministry has ordered all the app developers who operates such services in the nation to put a ban on private cars that exist in their current services. It has also instructed that all vehicles which are used for plying passengers as a means of transport should be owned by either taxi or car-rental companies,
A professor of business and technology at the University of Michigan's Ross School of Business, Wallace Hopp said "The Chinese Uber ban is the product of the same kind of protest from traditional taxi companies that we have seen in the U. S."
On January 5, thousands of taxi drivers went on strike in the city of Shenyang in China protesting against the increase of unlicensed private vehicles that are providing taxi services through smartphone apps.
The execution of a nationwide ban of the apps taxi services came after the local bans that were implemented in many of the big Chinese cities. This week the authorities in the Chinese capital, Beijing also announced a prohibition on taxi apps.
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