UBER Worried About "Social Order" In China? Uber Orders Drivers in China to Steer Clear of Taxi Protests

UBER Worried About "Social Order" In China?
Uber Orders Drivers in China to Steer Clear of Taxi Protests
Uber drivers told to stay away from taxi protests in Hangzhou or face cancellation of contract
http://www.wsj.com/articles/uber-orders-drivers-in-china-to-steer-clear-...
The Uber app displayed on a phone outside an office building in Beijing, China, Jan. 2015. PHOTO: ASSOCIATED PRESS
By COLUM MURPHY
June 13, 2015 3:38 a.m. ET

SHANGHAI—Ride-hailing app Uber Technologies Inc. is urging its drivers in China not to get involved in conflicts with authorities and has threatened to punish those who disobey.

The appeal came following a confrontation Friday evening in the eastern Chinese city of Hangzhou between drivers from local taxi services and Uber. Taxi drivers across China have taken to the streets to protest what they say is unfair competition from illegal taxis.

In two short messages sent to Uber drivers in Hangzhou and circulated online—verified with Uber in China by The Wall Street Journal—Uber urged its drivers not to go the scene and instructed those already there to leave immediately. Uber said it would use GPS to identify drivers that had refused to leave the location and cancel its contracts with them.

The messages said Uber’s actions were designed to “maintain social order.”

In a statement issued Saturday, Uber also said one Uber driver involved in an incident during Friday’s confrontation was licensed and had cooperated with the Hangzhou authorities. The company was strongly against any extreme behavior that could affect harmony and stability, the statement added.

Authorities in Hangzhou couldn't be reached for comment Saturday.

In addition to Uber, Didi Kuaidi Joint Co.—the merged entity formed by ride-fetching mobile app operators Kuaidi Dache and Didi Dache—has also come under fire in some Chinese cities.

The confrontation in Hangzhou is the latest upset for Uber in China. Authorities in at least two Chinese cities have visited its offices in recent months. The company has previously described such visits as “routine.”

The disturbance also comes as Uber looks to raise fresh funds for the China operation to better compete with the cash-rich Didi Kuaidi, which has backing from Chinese Internet giants Alibaba Group Holding Ltd. and Tencent Holding Ltd. Uber’s China unit, UberChina, is set to launch a formal fundraising process on June 22.

—Yang Jie contributed to this article.

Write to Colum Murphy at colum.murphy@wsj.com