Upgraded versions of car-hailing apps are facing problems in China, with transportation departments in many cities considering these services illegal.
The Shanghai Municipal Transportation Commission has started to crack down on Didi Zhuanche, an unlicensed car-hailing service provided via the Internet.
Unlike the standard Dache car-hailing service, which connects passengers with professional taxi drivers, the upgraded Zhuanche service uses car owners who do not drive taxis for a living.
The cost of the Zhuanche service is two to three times higher than regular taxi fares.
Yang Xiaoxi, deputy director of the commission, said the Didi Zhuanche service is illegal because all the cars are registered for private use and are not licensed for passenger transportation services.
"An unlicensed car service puts passengers' safety and rights at risk. It disturbs market order and increases the difficulties for us to do our work," Yang said.