Didi Taxi says car rental fees are not royalties

Chinese taxi hailing app Didi taxi is dismissing media reports it is charging royalties from its "Zhuanche" or high end private car service drivers.

Company CEO Zhu Pingdou says the fees it charges are car-rental fees, which he contends are different from the royalties paid by regular taxi drivers to their companies for using the license.

Media reports have been suggesting Didi has been charging drivers up to 6-thousand yuan, or nearly one thousand U.S. dollars, a month in royalty payments.

Industry observers notes Didi would be killing its own business if it starts to charge fees of this nature as it battles for market share.

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