Ride-hailing app Uber, has encountered another bump, in the fast lane of business expansion in China. Transport officials raided Uber's Guangzhou office on Thursday. They were following up on a government order in January, that banned private cars from being used as taxis through ride-hailing apps. Guangzhou's traffic authority said the company is suspected of unlicensed operation and conducting illegal business by allowing private car owners to offer taxi services, in violation of the government regulations. The raid appears to be the first time the ban against such services has been enforced.

Authorities raiding the Uber office on Thursday.

Pictures published online show uniformed officers inside Uber's office, seizing cartons full of mobile phones.

The local transport authority released a statement on Thursday night, saying that because "the company did not have the necessary business registration... the authorities seized relevant operational tools."

The statement also said the commission had investigated more than one case of smartphone apps being used to carry out illegal taxi operations, and those found guilty had been fined 30,000 yuan, or about 5,000 US dollars.

However, the raid was met with mixed reactions.

And while taxi drivers have praised what they call the "execution of justice," many users have complained about a lack of taxi services by licensed drivers.

Uber's office remained closed on Friday, with a notice saying staff were away on leave for the May day holiday until Monday.

But the service was still available across the city.

The raid in Guangzhou is one in a series of legal obstacles Uber has faced around the world in countries including India, Spain, Thailand as well as in the United States in its home state of California.

Here in China like elsewhere, the app has often sparked anger among licensed taxi drivers who protest against squeezed profits caused by competition from private car owners.

But the demand for taxis at any time, whether day or night, has fuelled the popularity of Uber like service providers.

Uber now operates in seven other mainland cities besides Guangzhou, including Beijing and Shanghai.

For now at least it seems, rides are available. For how long though, no one knows.

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