Arrest order over ‘car-hailing’ claims
Print Edition
Prosecutors have ordered the arrest of a Beijing woman who allegedly swindled car-hailing service Didi-Kuaidi out of some 30,000 yuan (US$4,727) with fake rides, according to a report in the Beijing Times.
The case highlighted the fierce competition and problems involved in the nascent ride-sharing business in China.
To expand their market share, car-hailing service providers such as Didi-Kuaidi and Uber have been spending heavily in China, doling out bonuses to drivers and passengers who use their services. The practice thus stimulated many drivers to take advantage of software loopholes by faking ride requests.
The woman, surnamed Chang, pretended to be both driver and passenger by using software.
Then she paid for the faked ride with coupons issued by Didi-Kuaidi before cashing in. She managed to earn more than 30,000 yuan within several months, according to the newspaper.
Chang is accused of committing fraud, said the report, adding that the case is still awaiting trial.
On Taobao, an online shopping platform backed by Alibaba, it only takes a simple search to find similar software used by Chang to fake rides. There are others selling fake Uber accounts.
The report said companies such as Didi-Kuaidi, now already valued at more than US$15 billion, lack the means to tackle such fraudulent practices.
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