China’s on-demand service giant Meituan Dianping has received a permit to operate ride-hailing services in Beijing, the city’s transportation bureau said Thursday.
Meituan tried to roll out a ride-hailing service in the capital city last year, but that effort failed as the company did not have a government license. Meituan first formally entered the ride-hailing business in March, with a fleet of cars in Shanghai. It faced significant resistance from regulators earlier this year over concerns that its entry could force incumbent industry leader Didi into a new subsidy war.
But two high-profile killings of Didi passengers in recent months have turned regulators against the company, which merged with global giant Uber’s China business in 2016.
Beijing’s decision comes after Meituan said in September that it would scale back the expansion of its ride-hailing business.