Uber may be in some hot water in the city of Guangzhou in China. According to Dayoo, the company is accused of running an illegal black car service and was raided on Saturday.
The nighttime raid was followed by a statement from the local transportation authority stating that Uber was operating as an illegal transport service in the area and had to be shut down since it did not comply with local laws. The joint operation was carried out by the local police as well as the Public Security Bureau and the Administration for Industry and Commerce.
Uber entered the Chinese market in August of 2013 and recently received and investment from Chinese search engine Baidu. It operates in a grey area in regards to the local laws as it tries to get around local black car and taxi laws by only accepting smartphone scheduling and not soliciting street pickups. These laws have caused issues for Uber in various markets and might have detrimental effects in Guangzhou.
Uber is also looking at the Balkans for their next expansion and has sent Rob Khazzam to the OMGCommerce convention in Croatia. Rob is an international launcher for Uber and identifies new markets. According to the interview on Netokracija, Uber is looking into an expansion into Croatia, Serbia, and Slovenia in the near term. Uber is confident that they will be able to expand to the Balkans and used the example of Brussels as the precedent for getting through legal hurdles.