Taxi app firms face fines over illegal cabs

Software companies behind third-party taxi booking app face fines if these are found to deal with illegal cabs, city officials said on Wednesday.

This is the latest initiative by the city transport authority to crack down on private cars offering taxi services and "cloned cabs" that look like genuine taxis.

Under the regulations, application companies must provide a list of drivers and their vehicles to the city's transport authorities for verification.

Those who don't cooperate and keep allowing illegal drivers use their platforms will receive fines of up to 100,000 yuan (US$16,195).

The two most popular apps, Kuaidi Taxi and Didi Taxi, are backed by Internet giants Alibaba and Tencent respectively,

"This is a loophole in existing transport management regulations as third-party taxi booking apps are a recent arrival," said Jiang Zihao, an official with the municipal legislative affairs office. "These platforms must operate according to the law."

In April the Shanghai Transport Commission asked Kuaidi Taxi and Didi Taxi for details on all their cabbies.

However, the data provided by the companies was said to be incomplete, said officials.

Some customers are convinced that unlicensed cabbies are getting fares through taxi apps.

Office worker Cao Qian suspects that one was sent to pick her up on Tuesday.

She noticed that the license plate number of the vehicle was different from one she was told to expect and its appearance raised further suspicions.

"The taxi was dirty and the driver was smoking. I felt uncomfortable and a bit anxious taking a ride in it."

Other measures have been introduced to tackle illegal cabs.

Anyone caught providing taxi meters and other equipment to create cloned cabs faces a fine of up to 100,000 yuan.

Illegal cab drivers also face fines, having records placed on personal credit ratings or blacklisted from applying for a Shanghai residence certificate.