Everyone who lives in a big city in China knows that getting a taxi is harder these days, but waving one down on the street is no longer the only option. With "e-hailing" apps, a taxi can be secured within several minutes by simply sending a message from a phone.

Wang Dapeng, a 30-year-old bank employee in Beijing, decided to try one of these taxi apps when he needed to take his grandmother to the railway station Tuesday.

"I found many Beijing taxi drivers using such apps. The taxi arrived downstairs five minutes after I tapped in my request in the software, as arranged. Without the app, I might have needed to keep my grandma waiting for half an hour on the street," he said.

Mushrooming business

The difficulties of getting a taxi have become a headache for people in large cities like Beijing, so the e-hailing apps have grabbed a large user base in a very short time.

At least one-third of the 68,000 taxis in Beijing have started using "e-hailing" apps since they became available in early 2012. In other major cities like Shanghai, Guangzhou and Shenzhen, the apps are also gaining popularity.

Most of the apps work the same way. After a client sends a request to the app – by tapping in the pick-up location and the destination, or by sending a voice message - the app will use GPS to locate nearby taxis. The driver who responds the quickest gets the fare.

Given the huge demand, many technology startups have been looking into the sector. At present there are more than 30 e-hailing apps available and the number is still climbing.

Regulation risks

One function of these e-hailing apps has allowed customers to pay a premium when they are in urgent need of a taxi during rush hour.

However, paying such a premium is illegal according to transportation regulations. Beijing Municipal Commission of Transport said on April 20 that it would create regulations to control the market, and may also establish a unified taxi appointment platform.

The transport authorities in Shanghai and Wuhan also said that it is illegal to pay or charge premiums. But taxi drivers and consumers hold a different view.

Other than the premium issue, some have also expressed concerns that the e-hailing apps may be used by illegal taxis to get customers.