Passengers divided

Wu Xing, a 30-year-old translator in Hangzhou, Zhejiang province, said she'll keep using the apps even if the subsidies end.

"I don't care if I get subsidies, so long as it helps me get a cab," said Wu, a loyal user of Kuaidi.

But others worry about the equity of it all.

"The practice may boost efficiency, but it ignores the idea of fairness in the processes that allocate resources," said Yu Hai, a sociologist at Fudan University in Shanghai.

Yu said the apps will put the interests of some people, notably the less educated and senior citizens, at "severe risk".

Under the Chinese model, where people may add tips to hire cabs, the hailing app has posed a "security dilemma", forcing people to rely on them at the expense of others.

"Who will protect those who shiver in the chilly wind and fail to get a cab for an hour in the middle of nowhere?" he asked.

But despite these concerns and disruptions, sticking out your arm to hail a cab is set to end, said Zhu Hailiang, a seasoned driver of the Uber fleet in Shanghai.

"In the future, throwing up your arm and yelling 'taxi' may be something seen in the movies. The best allocation of resources: Isn't that the spirit of a market economy?" he said.

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