Uber CEO Travis Kalanick visits China in wake of office raids in Guangzhou and Chengdu

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Uber has faced strong opposition in China from taxi drivers, but is very popular among users. Photo: Sam Tsang

Published: 12:00pm, 29 May 2015Updated: 10:16am, 17 Aug 2015

US car hailing service Uber’s founder Travis Kalanick is looking to mend fences with China in a recent visit, promising to work with authorities to make sure its services operate legally in the wake of raids by authorities on some of its offices.

In an interview with the Shanghai Morning Post this week, Kalanick said Uber hopes to gain support from local governments and to cooperate to make a positive impact on local economies.

“Uber will try to learn the local laws and bylaws to make sure its service is legal in China,” he told the paper.

Uber has faced a string of legal obstacles in countries around the world, including India, Spain, and Thailand, with governments and taxi companies protesting against it, saying that its service is based on unlicensed drivers and is unsafe and illegal.

During the first week of May, authorities in Chengdu and Guangzhou raided Uber’s offices, shutting them down and taking away computers and phones. Local authorities in China had banned car-hailing apps being used by drivers with no taxi licences in an attempt to regulate the sector and fend off protests from taxi drivers, who had organised strikes in five Chinese cities in January.

Taxi drivers feel increasingly threatened by drivers offering taxi services using smartphone apps. The apps allow drivers without taxi licences to directly pick up passengers, often at a cheaper price than regular taxis. Earlier in May authorities shut down the offices of Chinese car service apps Didi and Kuaidi in the central city of Luoyang after an altercation between drivers.

The services however have proved wildly popular with Chinese users. Uber and its Chinese rivals have heavily subsidised drivers since last November, and have offered coupons and free rides to grow users. Didi recently said it would spend US$161 million on promotional rides.