Shanghai’s Plan to Allow Car-Sharing Apps Seen Benefiting Uber

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Shanghai will allow car-hailing services via mobile apps starting next month, the first city in China to legitimize an industry popularized in the U.S. by Uber Technologies Inc.

Drivers for Didi and Kuaidi, the two leading Chinese car-hailing apps that recently merged, will be registered under the same information technology platform for taxis, removing their status as “black cars,” or unlicensed cars-for-hire, according to a statement posted on the Shanghai government’s website. Uber isn’t included in the pilot project.