The authorities in the Chinese mega city of Shanghai are increasing looking to restrict the use of popular taxi booking apps.

The move might put the investment by domestic as well as global companies into the technology at risk in the key market. The authorities are moving to restrict the use of such apps after a similar move by the authorities in the Chinese capital, Beijing. The new laws backed by the city authorities would ban the use of booking apps by cab drivers during the rush hours and also restrict the use by private vehicles licensed for hire.

Shanghai Municipal Transport and Port Authority released a statement on Wednesday stating that it will ban the use of these booking apps and also private vehicles licensed for hire. The market is dominated by Didi Taxi and Kuaidi Taxi as the two hold about90 percent of the market by daily taxi app orders in the previous year. Tencent is backing Didi Taxi while Alibaba has backed Kuaidi Taxi and have made investments in the sector.

Taxi booking apps allows for bidding of cabs and enables customers and drivers to negotiate a fare free from government controlled prices.