Uber Technologies is in trouble in Taiwan and the Chinese mainland mega city Chongqing over complaints that the company and its drivers aren't appropriately licensed.
The company has been subject to similar action in economies like Thailand and Spain, according to Reuters. An investigation in Chongqing, a city with a third more people than Taiwan, marks the first time Uber's legality has come into question in mainland China.
The action also comes less than a week after Uber won investment from Chinese internet company Baidu.
Uber, through its apps, charges a fee to decide what drivers will pick up passengers. A lack of regulation for the relatively new business model has brought Uber and similar companies to the attention of authorities in different places around the world.
The transport ministry in Taiwan said Uber is licensed to provide information services rather than transport, according to Reuters. It is investigating whether it has the right and enforcement capabilities to block access to Uber's website and apps.
"If Uber obtains the proper license it can continue operating in Taiwan," Ministry of Transportation and Communications Deputy Director Liang Guo Guo said this week, according to Reuters. "The company has not made clear how it plans to proceed."
In a separate statement on Monday,
The Chongqing government also said on Monday that it was investigating the legality of Uber's business model using private drivers. Private drivers operating without a license would be "classified as illegal behavior," the statement reads.
The government would fine unlicensed drivers operating car-hauling services 30,000 yuan ($4,826) to 100,000 yuan.
Uber, which is valued at approximately $40 billion, operates in eight Chinese cities. Chongqing, which has been available for a limited-time free trial, would be the ninth.
"We are actively communicating and seeking clarification with the Chongqing government," Xue Huang, communications lead for Uber in China, said in emailed comments to Reuters.
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