Transport authorities in Shanghai have shut down Didi's newly launched boat-hailing service on the Huangpu River.

The undated photo shows a yacht on Huangpu River in Shanghai that is part of Didi's newly launched boat-hailing services. [Photo: eastday.com]

Didi has been running a high-profile promotional campaign, teaming up with the local yacht club to give commuters free boat rides.

However, Hu Min with Shanghais' municipal transport commission says Didi hasn't met the right requirements to offer the service.

"Under the rules, water transportation companies need to have security assessments done on their piers, routes and ships. The operator also needs to have a formal license."

Shanghai's Transport Commission is set to launch is own water bus service along the Huangpu River before the end of this year.

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