Views: Worth the Ride?

(Beijing) – The country's transportation officials are mulling ways to regulate car-hire services as part of reforms of the taxi industry, a source with knowledge of the matter says. Experts say car-hire services have pressed the government, which controls the number of taxis in cities, to reform the taxi industry.

U.S. car-hire application company Uber started offering its services in China last year, and many Chinese companies have opened similar businesses that allow people to book private cars on an app. Those apps, often run by car rental companies who hire private drivers, have given urbanites an alternative to standard cabs. But this new business has faced questions over its legality, and taxi drivers in several cities have protested, saying it is eating into their business. Some city governments have banned the service.