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GUANGZHOU, China – Chinese regulators have summoned and interviewed 11 ride-hailing companies to ask them to correct non-compliant behavior.
The Ministry of Transportation, along with a number of other regulators, including the Cyberspace Administration of China and the State Administration of Market Supervision, jointly interviewed companies such as Didi, T3 and Meituan.
Chinese regulators claimed the services were recruiting unauthorized drivers and vehicles.
“It is necessary that these platforms review their own problems, correct illegal behavior, ensure market regulations for fair competition and create a healthy environment for the healthy development of the ride-hailing industry,” said the Ministry of Transport.
Focus on drivers
Regulators said all platforms should make sure they have the necessary permits for cars and drivers.
Ride-hailing platforms shouldn’t mislead riders into joining through fake promotions or transfer business risk to riders, regulators said.
Drivers should also have enough rest time and companies should reduce the commission they receive for each trip, regulators added.
As Chinese President Xi Jinping promotes the idea of ”shared prosperity” – an attempt to support moderate prosperity for all – workers’ rights, especially in the tech and gig economy, have come under scrutiny.
Didi and the Chinese e-commerce giant JD.com have formed unions for their workers, according to Reuters. This is a big step as organized labor is very rare in China.
Meanwhile, China has placed a great deal of focus on data protection in recent months. The various Chinese regulators said that companies in the industry should also protect users’ data. China passed two of the most important data security and privacy laws that businesses must comply with this year.