Didi Kuaidi Obtains China’s First Ride-hailing License

Transport authorities in Shanghai have issued an operating license for running a ride-hailing platform to Didi Kuaidi.

“This is making us the largest registered Internet company in Shanghai, and further deepening Uber China’s localization”, the company told VentureBeat in an emailed statement.

This announcement from Uber comes on the same afternoon that Didi Kuaidi’s private car-hailing service, which resembles UberX and UberBlack, was the first in the country to be given full regulatory approval. “There are still uncertainties as to how the industry will be regulated as the nationwide policy is not announced yet”.

Uber and Didi Kuaidi are locked in a turf war in China, investing billions of dollars to lure in riders with steep discounts and to subsidize the money earned by drivers. It’s not clear if Uber’s Shanghai subsidiary is related directly to the regulatory approval process, although one of the mandates is that approved car-flagging apps are licensed and based in mainland China and follow Chinese web media and data protection laws.

Car-hailing company Uber said Thursday it is planning to expand into dozens more Chinese cities within a year and invest 1 billion as it looks to ramp up market share in the world’s most populous country.

Internet-based car-hailing services should offer better-quality vehicles and services than traditional taxis and charge premiums, and the local government will crack down on operators that offer low-price services, Sun said. Didi Kuaidi said its license will require insurance coverage for as much as 6 million yuan per vehicle annually.