Taxi Hailing App Hits Industry Red Light

The technology began operating six weeks ago in more than 100 taxis

Friday, Oct 26, 2012  |  Updated 5:33 PM EDT
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Martin Heikel, co-founder of ZabKab, displays the passenger hailing ZabKab app on his smartphone, in New York Wednesday.

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A smartphone app introduced last month to help taxi cab drivers and would-be passengers find each other will be shut down.     

The technology was developed by the Uber company. It began operating six weeks ago in more than 100 taxis.     

Company CEO Travis Kalanick told The New York Times that demand for the app was high among passengers, but that many drivers didn't sign on for fear of reprisal from the Taxi and Limousine Commission.     

City guidelines prohibit prearranged rides in yellow cabs.     

When the app was introduced, the TLC said it had not authorized the use of any taxi apps for cab-hailing or payment.

It cited its existing contracts with payment processors. It didn't directly address whether the app violated the ban on prearranged rides.

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