China conducts regulatory talks with ride-hailing firms

A Didi logo is seen at the headquarters of Didi Chuxing in Beijing, China, November 20, 2020. /Reuters

Eight Chinese regulatory authorities on Friday jointly summoned 10 ride- and van-hailing companies for regulatory talks so as to safeguard the legitimate rights and interests of practitioners in the transportation industry.

Companies including Didi Chuxing, Meituan's ride-hailing unit, Alibaba-backed Gaode, van-hailing logistics company Huolala are among those in attendance.

Online car-hailing platforms were found to have problems such as charging high agency fees, not being transparent in allocation mechanisms, and arbitrary adjustment of pricing rules, while internet van-hailing companies were found to monopolize freight information, maliciously lower freight rates, and increase membership fees at will.

China's regulators urged these platforms to rectify pricing rules and order dispatching mechanisms, optimize drivers' working environment by fending off working overtime and fatigue, and put in place a smooth communication channel to serve practitioners' interests.

The platforms stated that they would conduct a comprehensive and systematic review of their operations and conduct rectification to effectively protect employees' legitimate rights and interests.

The eight government organs comprise the Ministry of Transport, the Cyberspace Administration of China, National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Human Resources and Social Security, the State Administration for Market Regulation and National Public Complaints and Proposals Administration.