China has banned private cars taking part in ride-hailing apps, throwing up a new hurdle to Uber's global expansion.
Only licensed taxis may use ride-hailing apps, the Ministry of Transport has announced. Such apps are hugely popular in China, and the ministry says it needs to protect users.
The ruling could be a setback for Uber, which faces legal challenges in South Korea, India, Europe, California and other markets for using drivers who lack taxi licences.
"While we encourage innovation, we prohibit private cars from using platforms to participate in the 'hired car' business," said a ministry announcement.
Uber says its "business is running as usual", though it has given no indication how many of its drivers might lack taxi licences.
China's ride-hailing market is dominated by domestic competitors Didi Dache, backed by internet giant Tencent, and Kuaidi Dache, backed by rival Alibaba Group. Those services are used mostly by taxi companies.
A third Chinese internet giant, search engine operator Baidu, jumped into the market in December by investing in Uber.
Taxi companies in the US, Europe and other countries have complained Uber and similar ride-hailing services have an unfair advantage because they are not covered by regulations that affect the established industry.
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