A TAXI booking application was found cooperating with private vehicles that did not have car rental licenses.
Dahuangfeng Taxi, a cab booking software owned by Shanghai Dahuangfeng Technology Co, has been using private cars illegally for customers using their app, the Shanghai Transport and Port Administration said yesterday.
The driver of a private car told Shanghai Television he and some private car owners approached the company and sought their cooperation.
The company agreed to check the vehicles first and then added them to their operational list. It earned 8 percent of their earnings every month.
Administration spokesman Huang Xiaoyong said vehicles meant for rental business have a different license.
Huang said during a spot check only one out of 15 vehicles qualified for rental business while others were all private cars. He said Dahuangfeng had violated traffic management law by using private cars in their operation.
However, when contacted by Shanghai Daily yesterday, a Dahuangfeng spokesperson denied using private cars, insisting that its cooperative partners were car rental companies with legal certificates.
Traffic authorities said they are investigating the illegal operation, and will strengthen inspection of vehicles that take up rental business.
Illegal operators face a fine up to 50,000 yuan (US$8,220). Their vehicles can be impounded and illegal income seized, Huang said.
Local company Dahuangfeng started offering short-term car rental service in Shanghai after merging with Hangzhou Kuaidi Taxi Co last November.
Kuaidi and Didi Taxi hold the biggest share of the taxi booking application market.