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China to Boost Scrutiny of Online Ride-Hailing Firms

Transport officials to monitor all ride-hailing firms for ‘illegal activity’; Seeking to eliminate non-compliant vehicles and drivers

A Didi taxi is seen in Shanghai. Chinese regulators are watching all ride-hailing companies closely after the Didi listing controversy. Photo: AFP.

• Transport officials to monitor all ride-hailing firms for ‘illegal activity’

• Seeking to eliminate non-compliant vehicles and drivers

 

China will ramp up its scrutiny of online ride-hailing firms under plans to strengthen the protection of worker rights and require firms to amend any non-compliant operations, the Ministry of Transport said on Friday.

Some ride-hailing firms were infringing driver rights, while other platforms were disrupting fair competition in the market, the ministry said in a statement. Online ride-hailing firms with “illegal” operations will be required to put forth timetables and work plans on how they will expedite the removal of non-complaint vehicles and personnel, it said.

The ministry is planning to publish policies to protect the rights and interests of workers in the transport sector, it said.

Didi Global, China‘s largest ride-hailing giant, has faced increasing regulatory pressure and became the target of an investigation by the Cyberspace Administration of China days after it raised $4.4 billion in an initial public offering.

Didi did not immediately respond to a request for comment on the ministry’s statement.

China‘s market regulator also introduced reforms last week on food delivery platforms targeting worker pay, insurance and a relaxation in delivery deadlines.

 

  • Reuters

 

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This story was updated on July 31 to edit the second paragraph.

AF China Bond