Local governments aren't shying away from grabbing the wheel of China's taxi hailing app market. Municipal authorities in Shanghai, for example, have banned the use of such apps during rush hour. The city has also compelled the makers of popular booking apps like Didi Dache and Kuaidi Dache to link their services with Shanghai's official taxi dispatch system.

Such maneuvers have sparked concern about whether authorities really have the best interests of the public at heart. In several locations, transportation departments and taxi companies have already joined forces to charge an additional fee to passengers who reserve cabs with the help of dispatchers.

It's good to see the government showing so much concern for the potential safety risks posed by taxi hailing apps. But ideally, officials should also encourage transparency by allowing a third party to coordinate market resources.

The sudden popularity of taxi hailing apps across China is a reflection of fundamental conditions in the transportation market. Authorities should consider how they can make use of these apps to steer the market in a healthy direction.

The author is Xiao Chang, a media personality.