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China to set a cap on commissions of online ride-hailing platforms: Ministry of Transport
Published: Aug 18, 2021 10:37 PM
Photo: VCG

Photo: VCG



China's Ministry of Transport said on Wednesday that it will set a cap on the commissions that online ride-hailing platforms are allowed to charge to drivers, amid the country's stepped-up efforts to regulate the internet economy and protect workers' rights.

Li Huaqiang, an official from the Ministry of Transport, said during a press briefing of the State Council Information Office on Wednesday that the ministry, along with other departments, will speed up the implementation of a guideline to address a number of issues in the ride-hailing industry, including excessively high commissions, abuse of market rules, inducing drivers to work overtime, and fatigue driving. 

Under the guideline, platforms are required to regulate self-pricing practice, reduce excessively high commissions, set a ceiling for commissions and make them accessible to the public. 

Also, the ministry urged platforms to set a reasonable standard for drivers' payment based on the intensity of labor, work distribution, local salary level and market operation, and make these standards available to the public.

In addition, platforms are required to improve distribution and operating efficiency of vehicles and set work shifts and intensity for drivers in a scientific way to avoid overwork and fatigue driving. 

In May, Chinese authorities summoned 10 online ride-hailing platforms, including Didi Chuxing and Meituan, urging them to charge commissions fairly and transparently and ordered them to rectify these problems. 

Global Times