Meituan, China’s group-buying website and e-commerce giant, rolled out ride-hailing service in Shanghai on Wednesday but was soon summoned by Shanghai city authorities (in Chinese) on the same day and warned to adhere to local regulations.

To further take on Didi, the dominant ride-hailing player, Meituan has employed low pricing policies and advertisements as it prepares to enter the sector by triggering a pricing war. It has placed advertisements with wordings like “hail a ride for only one yuan.”

Shanghai city authorities, however, are not so tolerant regarding the matter. The city’s public transport, police, and pricing supervision authorities warned Meituan on Wednesday that the firm failed to link the data of vehicles and staff to the city’s supervision platform of online ride-hailing businesses, as reported by local media. Also, local regulations require all registered vehicles and staff to obtain relevant licenses issued by Shanghai city authorities.

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Timmy Shen

Timmy Shen is a technology reporter based in Beijing. He's passionate about photography, education, food and all things tech. Send tips and feedback to timmyshen@technode.com or follow him on twitter at...