Authorities in a southern Chinese city raided an office of Uber Technologies Inc. and seized cellphones and other equipment, a state-run newspaper reported, in the latest setback for the U.S. car-hailing app company’s operations in China.

Officials with the Guangzhou city government’s transportation, police and business-licensing departments conducted the operation at Uber’s office Thursday, and an investigation was continuing, the Guangzhou Daily said Friday. Calls to the press office of the city’s transportation commission rang unanswered Friday, a public holiday in China.

The newspaper cited the transportation commission as saying that the operation was conducted on a company that was “organizing private drivers without operational qualifications to engage in business activities.” The committee’s statement to the newspaper didn’t identify the company as Uber, but the newspaper did.

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