The emergence of online ride-hailing services (ORS) in the taxicab industry has greatly changed the mode of travel for urban residents worldwide. China is one of the earliest countries that used ORS, and also the first country to legislate on this new business mode. This chapter introduces the development process and business mode of ORS in China. Based on a theoretical model, this chapter analyses the possible impact of ORS on urban traffic congestion, and provides empirical data from some major cities. Furthermore, this chapter introduces the legal framework of ORS regulation issued by the Chinese central government in 2016 and the implementation of regulation in major cities. Finally, it is believed that government regulation aimed at maintaining a competitive market structure, ensuring smooth urban traffic and safe travel will be conducive to the further development of ORS in China.