China Will Inspect Ride-Hailing Service Providers

China Will Inspect Ride-Hailing Service Providers
Photo: Alexander Schimmeck / Unsplash 18.02.2022 187

Five major domestic ride-hailing service providers (including Didi Chuxing) were summoned by market regulators of Central China's Henan Province over multiple business activities that are disrupting market order and fair competition.

This week, 8 agencies released an updated Notice of Strengthening Collaborative Work to Regulate the Online Taxi Ordering Industry at all stages of the chain - before, during and after the breach. At the joint meeting, officials noted that some ride-hailing platforms have opaque pricing plans, are dispatching orders for non-compliant vehicles and drivers, illegally operating intercity passenger lines for online car-hailing, raising the platform's commission ratio, and have an unreliable dispatching mechanism, which leads to overtime work and driving fatigue for employees.

The officials said these practices disrupt market order and fair competition and damage the legitimate rights and interests of drivers and passengers.

The Ministry of Transport said in the notice that platforms that have incurred in serious violations and refuse to rectify their actions could be ordered to suspend regional operating service or have their apps blocked, after city regulators reported the situation to higher levels and organized a joint supervision. The notice also requires state agencies, businesses, employees, passengers, and industry associations to jointly participate in the governance mechanism. 

The Chinese government has continued to regulate the online car-hailing industry asking local authorities to maintain a “high regulatory pressure” to safeguard workers' rights and further strengthen antimonopoly regulations in the new service industry.

Source: Weixin, Global Times

digital markets  China 

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