UBER, the U.S. app-based transportation and taxi company, seems to have escaped China’s crackdown on cab-hailing apps.

    “The business is running as usual,” Huang Xue, spokeswoman for Uber in Shanghai, told China Daily on Jan. 10 in an email.

    In spite of some reports that Uber would be hurt by the new regulations in China, its operation was not impacted much.

    Chinese authorities are mainly concerned about apps that allow hail lifts from cars that are privately owned, the spokeswoman said. “However, unlike acting as an app-based cab-hailing company that collaborates with private drivers in other countries, Uber transformed its business model in China and works only with licensed car-rental firms.”

    But it is still unsure whether the company’s “People’s Uber,” a ride-sharing program, will be stopped under the new rule even though it hasn’t been profitable. The service aims to match private drivers with people looking for a lift, and the only money exchanged is what the passenger pays the driver to cover the gasoline costs. Uber didn’t immediately reply to a message seeking comment on “People’s Uber.”

    The company also said it will work with authorities on adopting appropriate regulations for new technologies that can help solve urban transportation issues.

    “It is right for Uber to localize its strategy and give up its app-based private taxi model in China,” said Zheng Yuhuang, a marketing professor at Tsinghua University. “Collaborating with local legitimate car-rental firms could help Uber fit the Chinese legal system and market.”

    The company still faces hurdles expanding in China because the ride-hailing business is still in a gray area. Companies such as Uber should make sure their businesses comply with local laws and regulations “to avoid more legal risks in the future,” said Zheng.

    (SD-Agencies)