Didi Kuaidi, China’s dominant car hailing app, has secured the country’s first municipal licence for “internet car booking” in Shanghai in a first step towards regulating the market — which has been marred by controversy.
The move, announced yesterday, is part of a pilot starting in the financial hub to test out regulations, which could be rolled out across China later this year.
The granting of a licence to Didi will do little to dispel the impression that domestic internet companies face fewer challenges operating in China than foreign competitors such as Uber, the San Francisco-based ride-hailing app that is mounting a concerted challenge to unseat its local rival from the top spot.
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