Draft rule takes aim at online car-booking services

A draft regulation has been drawn up to ban the use of private cars in online car-booking services, striking a potential blow to market leader Didi Kuaidi and United States-based Uber Technologies Inc.

Under the draft rule, published by the Ministry of Transport on Saturday, drivers of unlicensed vehicles are barred from offering rides for payment through car-hailing platforms.

"All cars for such services need to be registered as taxis," according to the draft, which was published on the ministry's website and is open for public feedback.