Tech companies trying to break into China’s taxi market have been dealt a setback after the Shanghai government said it would limit the use of taxi-hailing apps in the city – and ban their use during rush hour.
Apps that help users hail and pay for cabs on their smartphones have taken off in China and have become the battleground in a proxy war for dominance in the lucrative mobile payments market.
Bad traffic and high demand for cabs in Chinese cities makes hailing them on the street difficult – a problem that the apps address by allowing users to offer drivers additional tips to accept them as passengers.
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