Didi under pressure after rival gets license

The logo of Didi Chuxing is seen at its headquarters in Beijing, Jan 10, 2017. [Photo/VCG]

Didi Chuxing, China's largest car-hailing provider, is facing increased pressure after one of its rivals obtained a license needed to legally operate car-hailing business, experts said on Thursday.

Shouqi Limousine and Chauffeur, a unit of Beijing Shouqi Group, a major car-rental and taxi firm, on Wednesday received the first online car-hailing platform business license issued by the Beijing transport authorities.

Major cities rolled out regulations in October, asking car-hailing operators to obtain licenses from local governments.

Wang Xiaofeng, a tech analyst at Forrester Research Inc, said Didi has not been granted a license yet, partly because it takes time for government agencies to review Didi's sprawling and complicated business.

As of December, the Beijing-based company has about 400 million users in more than 400 cities.

"But there is an urgent need for Didi to accelerate steps to get a green light from the government," Wang said.

Car-hailing platform operators need to be reviewed by government agencies, including transport, public security and taxation, before being granted licenses.

Zhang Xu, a transport analyst for internet consultancy Analysys, said: "If Didi can get the license before March, Shouqi Limousine and Chauffeur's head start won't have big effect on it," Zhang said.

Shouqi Limousine and Chauffeur's service is now available in 35 cities.

"We will step up efforts to diversify business and expand our presence in more cities," said Wei Dong, CEO of Shouqi Limousine and Chauffeur.