Driver numbers down, but Uber still running after Guangzhou police raid

Last week, Chinese police raided the Guangzhou headquarters of Uber. Arriving at night, police officers and officials from Guangzhou’s public security bureau (PSB), the Administration for Industry and Commerce (AIC) confiscated phones and other equipment, and reportedly said the company was operating illegally.

But on Monday, the Southern Metropolis Daily reported that things seemed to be business as usual for Uber Guangzhou. While offices were empty over the weekend due to the holiday, authorities did not shut down the office, and drivers told the newspaper that Uber continues to operate. Its special for-drivers platform has been taken offline temporarily, drivers say, and there seem to be fewer drivers on the system, leading to very busy schedules during rush hours. But for a company that just got raided by police, Uber seems to be doing OK.

Driver numbers dropping is also likely a temporary issue – once the heat dies down, drivers who have disappeared for fear of being fined will likely come back into the fold. Whether the heat will die down is another question, of course: Chinese authorities say that Uber is suspected of operating without the proper business license, and following the raid the company has been ordered to rectify that.

But at least publicly, there seems to be some confusion over Uber’s legal status and the license it may or may not need, both in terms of its financing (does it count as foreign or domestic?) and in terms of its industry (is it a transportation company or a tech company?). A representative of the Guangzhou Administration for Industry and Commerce told Southern Metropolis that at the moment, it would be “inconvenient” to release the details of their investigation.

Following the news of the raid, an Uber representative told Tech in Asia: “Uber prides itself on providing efficient and convenient transportation options for riders to get from point to point, helping cities reduce congestion pollution. We have maintained open channels of communications and are working closely with local authorities in cooperation.”

(Source: Southern Metropolis Daily)