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Shanghai Bans Taxi Apps During the Busiest Times of Day

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People in China’s most populated city can no longer use apps to get cabs during rush hour.

The city government in Shanghai recently followed in Beijing’s footsteps by banning taxi-hailing apps from7:30 to 9:30 a.m. and 4:30 to 6:30 p.m. local time because they affect the “fairness of the taxi industry,” according to CNN. The government’s statement on Wednesday about the new regulations also alleged that any privately owned cabs can never use the apps.

The ruling is a blow to corporate investment giants Tencent and Alibaba, which had each backed separate popular taxi apps, according to Reuters. Tencent’s Didi Taxi and Alibaba’s Kuaidi Taxi dominate the Chinese market, which has garnered around $43 million in investments over the past two years. Read more…

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