China sets rules to safeguard interests of drivers in ride-hailing industry - Pi...

China sets rules to safeguard interests of drivers in ride-hailing industry

China sets rules to safeguard interests of drivers in ride-hailing industry

December 1, 2021 4:43 am

Chinese regulators have imposed new regulations on the country's ride-hailing industry, curbing monopoly in the sector and safeguarding drivers' rights.

On November 30, the Ministry of Transport and eight other departments jointly issued guidance aimed at strengthening the protection of the rights and interests of drivers in the ride-hailing industry.

In the guidance, the ministry listed several tasks, including limiting the dispatch fees that companies can earn and providing drivers with social insurance.

The ministry also said that escalating anti-monopoly measures will be implemented to regulate companies in the sector, maintain a fair competitive market order, and prevent the disorderly expansion of capital, adding that illegal activities such as low-price dumping, profiteering from big data, and inducing fraud will be punished in accordance with the law.

China will set up local-level supervisory workplaces staffed by personnel from a number of companies earlier than the 12 months’s finish, in line with the rules.

The latest move came after Chinese regulators told 10 companies in the delivery and ride-hailing sectors, including Meituan, DiDi Global, Alibaba Group's Ele.me and Tencent Holdings, to better protect their workers in September.

Previously in August, the ministry said that it was considering setting an upper limit on commission taken from drivers by car-hailing platforms.

China's online ride-hailing industry has developed rapidly in recent years. There are 236 companies operating car-hailing platforms across the country, with more than 3.51 million licensed drivers engaging in such business.

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