Woman held in China for taking taxi hailing APP for a ride

A Chinese woman has been arrested for allegedly swindling car-hailing service Didi-Kuaidi of some$4,700 with fake rides by pretending to be both the passenger as well as the cab driver. The case, the first of its kind involving the so-called on-demand economy, highlights 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 the 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, the Beijing Times reported. Chang is accused of committing fraud, the report said, adding the case is still pending trial.