China's leading taxi-hailing Didi is reportedly mulling over a carpooling service for passengers.

According to thepaper.cn, the company is negotiating with the traffic administrative department in Shanghai.

However the current traffic regulation in Shanghai stipulates that taxi drivers in the city should not offer a carpooling service.

Staff with the company's Shanghai office says the service has earned goodwill from the local government of big cities such as Beijing and Nanjing where traffic

congestion and pollution poses a huge hazard.

The company also said passengers who choose the carpooling service will get a maximum 30 percent discount.