2nd Uber office in China under investigation

Image
AP Beijing
Last Updated : May 06 2015 | 4:57 PM IST
Chinese police have visited Uber offices in a second city in a widening investigation into the company's operations in China.
An official at Chengdu's city transportation commission said the visit today was part of an investigation into Uber allowing private drivers to offer their services via the taxi-hailing app, which has established a presence in about 10 Chinese cities.
The Chinese government in January banned drivers of private cars from offering such services through apps.
Police last week raided Uber offices in the southern city of Guangzhou, seizing thousands of iPhones and other equipment used to run the business.
The city's transport commission said it suspected Uber was operating an illegal taxi service without a proper business registration and threatened fines of 30,000 yuan, or about USD 4,860, to those operating such services.
Uber faces multiples legal and regulatory challenges as it expands in the United States and abroad. In India, it has been banned in New Delhi, the southern technology hub of Hyderabad and the entire southern state of Karnataka.
The Chengdu official, who like many Chinese bureaucrats identified herself only by her surname, Ren, said she had no further information about the investigation there.
There was no listed telephone number for Uber's offices in Chengdu and a spokeswoman did not immediately return an email asking for comment.
The company, which is valued at $40 billion, allows passengers to summon taxi drivers in more than 250 cities around the world.
Such services have become hugely popular in China's congested cities, particularly those such as the capital Beijing and the financial hub of Shanghai where hailing a taxi on the street during rush-hour can be all-but-impossible.
A late arrival to the China market, Uber faces heavy competition from more established local apps backed by major investors. Most estimates put its share of the Chinese market at about 1 per cent.
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: May 06 2015 | 4:57 PM IST

Next Story