Uber adjusts business model to drive success in China

Legal concerns

Industry insiders say Uber is not as good as users might imagine, as there is no insurance cover in case of accidents.

China's transport authorities have not given the nod to Uber. The transport ministry said in early 2015 that innovation is encouraged to improve transport problems but also made it clear that private cars are not allowed to offer rides for profit.

There has since been little progress. Uber started providing services in Nanjing on July 2 and that day local transport authorities said private cars would be punished if they charge for rides.

Uber is meeting with resistance in many countries. It has provoked protests from taxi drivers from London to New Delhi as it upends the traditional business model that requires drivers to pay fees for licenses to operate cabs, which they say are often exorbitant.

In France, two Uber managers have been ordered to stand trial on behalf of the US company on charges including "deceptive commercial practices" and complicity in illegal activities linked to its service.

Cape Town traffic police impounded 200 Uber ride-sharing vehicles in 2015 for not having proper permits to operate in the South African province of Western Cape, according to the People's Daily.

Uber has also been declared illegal in many Asian countries, including South Korea, Thailand and India.