Chinese car rental service CAR Inc., more commonly known as Zuche, has rolled out a ride-sharing service UCAR Zuche Tailored Car Service (our translation), adding another competitive player to China’s booming taxi-calling industry.

The company is planning to launch the service in 60 cities around the country, according to CEO Charles Lu. He said that Zuche, which has started recruiting drivers in Beijing, Shanghai and Chengdu, has targeted adding 50 million users this year with an aggressive RMB2.5 billion (around US$400 million) subsidy plan to attract users.

As a leading car rental service in China, Zuche couldn’t have chosen a better timing for expanding into the country’s thriving ride-sharing market. China’s transportation regulator recently ordered all taxi-hailing apps operating in China to exclude private vehicles on their platforms due to security concerns. Only licensed drivers and taxi companies remained legal to provide such services. The apps using private fleets, like Alibaba-backed Kuaidi Dache, Tencent’s Didi Dache and Uber for profit are facing major setbacks.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.