Chinese ride-hailing service providers summoned by market regulator in Henan
Published: Feb 17, 2022 12:22 AM
A smartphone with Ride-hailing apps Didi Chuxing, Dida Chuxing and Cao Cao Mobility Photo: VCG

A smartphone with Ride-hailing apps Didi Chuxing, Dida Chuxing and Cao Cao Mobility Photo: VCG

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

In a joint meeting with the traffic and transport, public security and market regulator, officials said 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 move came after a joint notice issued on Monday by eight departments, including the Ministry of Transport, which said China will strengthen oversight on the online ride-hailing industry to regulate its development.

The notice said 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.

They may also be ordered to stop providing their service and could be banned from the internet, among a series of penalties.

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 anti-monopoly regulations in the new service industry.

In January, the Ministry of Transport of China summoned four online freight platform companies, including on-demand delivery service provider Huolala and Didi Freight, and required them to safeguard the legitimate rights and interests of drivers.