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December 27, 2014

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12 illegal cabs used by Didi Taxi confiscated

TWELVE unlicensed cab drivers have had their vehicles confiscated for offering illegal taxi services, the Shanghai Traffic Commission said yesterday.

The cabbies, five of whom were also fined 10,000 yuan (US$1,600) apiece, were punished for providing “tailored taxi services” on behalf of third-party booking application Didi Taxi, it said.

The drivers were working as “black cabs” and were therefore illegal, it said.

The seven drivers yet to be fined are being investigated and will be punished in due course, the commission said.

“None of the vehicles were registered as taxis with the commission and the drivers did not have business licenses,” said Yang Xiaoxi, its deputy director.

Despite the vehicle seizures and fines, the authority has not banned tailored taxi services. It has, however, warned Didi Taxi that it could be fined up to 100,000 yuan if it continues to use unlicensed cabs and drivers.

Didi Taxi said it will cooperate with the commission regarding the future of its “Special Taxi” service.

A member of Didi Taxi’s customer service staff told Shanghai Daily yesterday that the service is still available in Shanghai, but customers must register their cellphone numbers to use it.

The service uses high-end vehicles, while its drivers wear uniforms and open and close doors for customers.

The cabs, which have a flagdown rate of 17 yuan (3 yuan more than regular taxis) also provide drinks, towels, umbrellas and mobile phone chargers.

As well as Shanghai, the service is available in Beijing, Guangzhou, Shenzhen, Hangzhou and Xiamen.

Despite the vehicle seizures and unlicensed drivers, Didi Taxi claimed it rents all its vehicles from official companies. However, none of the 36 authorized car rental companies in Shanghai said they had signed a cooperation contract with Didi Taxi, the commission said yesterday.

That means the vehicles are privately owned and therefore illegal, it said.

In the event of an accident in such a cab, a passenger would have no recourse to compensation as such vehicles are not properly insured.

All licensed vehicles have a “Y” as the second letter of their registration plates, the commission said.




 

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