DIDI Kuaidi, China's largest ride-hailing platform, has been licensed by the Shanghai Transport Commission for private-car booking services, in an apparent easing of tensions between regulators and ride-on-demand operators.

"This (license) is the first of its kind in China," Cheng Wei, the company's chief executive, told a press conference yesterday.

In a separate statement, Didi said it will buy liability insurance for all of its contracted vehicles and passengers and also tighten its requirements when selecting drivers.