Premium car pick-up services through Uber-like mobile phone apps connect riders to third-party companies' drivers. By this the apps and services blur the boundary between traditional taxi and car hiring business. [Photo/IC]

Premium car pick-up services through Uber-like mobile phone apps connect riders to third-party companies' drivers. By this the apps and services blur the boundary between traditional taxi and car hiring business.

The positive side of the app platform is that it builds direct communication between the drivers and passengers, and replaces the old-fashion call center.

China Daily website reporters tested several rides as customers in Beijing through widely used pick-up service apps, including Didi Dache, Kuaidi Dache, and Yidao Yongche.

The vehicles are usually cleaner and tidier than many taxis and have Wi-Fi connection and free bottled water.

However, some drivers are private car owners who do not have a commercial license, but Chinese law prohibits individuals carrying passengers for profit.

Due to the unlicensed drivers, the not so well-trained private car owners could give the premium service a bad name.

A Yidao Yongche app user took a friend to the airport. When the driver tapped "arrived at the destination", the app automatically charged the app user's credit card. But the driver once again charged the passenger, and failed to deliver him to the Yongche Inc's advertized VIP boarding service.

Some app platform companies claim the car hiring companies are responsible for the drivers, but the drivers said the app companies also take a certain amount from their service fees.

In past months, these app companies have lavishly given subsidies to drivers and free coupons to passengers. A driver said he got 100 yuan for each ride, and passengers may get coupons worth several yuan to 100 yuan.

Attracted by the subsidies, a number of private car owners simply signed a contract and rushed on to the app platform. A private car owner replaced his compact vehicle with a full-size sedan to fulfill the premium pick-up service' prerequisite of car models.