Beijing orders Meituan, Didi Chuxing and other ride-hailing providers to give drivers a fair share of revenue
- The cyberspace watchdog and several other regulators summoned ride-hailing providers for a lecture
- The companies are accused of taking an unfair share of commissions from drivers
Chinese authorities have summoned 10 online ride-hailing providers, including Didi Chuxing and Meituan, urging them to charge commissions fairly and transparently, in Beijing’s latest efforts to crack down on malpractices by the country’s internet platforms.
A group of eight regulators – including the Ministry of Transport, the Cyberspace Administration of China, and the Ministry of Industry and Information Technology – lectured representatives from the companies on Friday and ordered them to rectify problems such as unfair pricing.
The companies include some of the country’s biggest ride-hailing platforms, as well as other players including AMAP, the map service owned by the South China Morning Post’s parent company Alibaba Group Holding, as well as Huolala, Kuaigou Dache, and carmaker Geely’s Caocao.
Accusations levelled by the regulators include excessively high commissions, opaque mechanisms in distributing ride-hailing orders, abuse of pricing rules, and perpetuating a monopoly on freight data, according to China Transport News, the state news outlet under the Ministry of Transport.
“[The problems] have infringed on the legitimate rights and interests of industry practitioners and caused widespread concern in the society,” it said.
The regulators reportedly ordered the platforms to take immediate remedial measures, including keeping drivers informed of commissions and intermediary fees, improving pricing and distribution mechanisms, as well as guaranteeing a reasonable income and working conditions for drivers.
The companies were also ordered to set up Communist Party groups for gig workers.
