File photo shows east China's Hangzhou City where the the G20 summit will be held. [Photo: zjol.com.cn]

Transport authorities in east China's Hangzhou City has prohibited private cars registered outside the city from entering on-demand mobility (ODM) service including Didi and Uber.

The city's transport bureau said a large number of non-local cars offering ODM service in Hangzhou have worsened the city's traffic and imposed management uncertainty for the upcoming G20 summit.

The bureau in January ordered to phase out non-local cars in Hangzhou. In April, the city's public security bureau began a background checks on about 140,000 drivers on the apps.

Uber said it will not assign orders to non-local cars until the end of the summit, and turn down applications from non-local drivers.

Didi announced similar action.

The two companies promised a more complete background screening on new applicants and to remove drivers with criminal records or mental disorder, and drug users from their platforms.