Beijing's transport authority issued a new rule on Wednesday banning private car owners from using car-booking apps to offer pick-up services to passengers.

The regulation issued by the transportation management bureau of the Beijing Municipal Commission of Transport stipulates that only licensed companies, owning the vehicles they use, can use the car-booking apps to offer chauffeur services.

The regulation is expected to change the business model of companies who use owner-drivers rather than using their own fleet of cars or teaming up with car rental companies.

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