Smartphone-based services have cab companies worried

GUANGZHOU, China - Taxi app usage is on the rise in China as the services offer access to more luxurious cars, cut waiting time and cost less than conventional cabs.

While two companies dominate the country's taxi-hailing apps, users are expected to increase as Uber Technologies, a US app company, readies itself for the market.

Until now, Taxi apps have usually involved traditional cab companies in China. Recently, however, the use of ordinary cars is rising as better vehicle quality and more skilled drivers attract users.

As competition intensifies, fares and services are constantly changing. Different taxi apps demand different fees, which change depending on the city and also vary weekly.

Users enter a destination into the app and choose a vehicle, with choices including taxis, ordinary cars, luxury cars and other models.

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