Beijing orders Didi etc. to give drivers a fair share of revenue
(Yicai Global) May 14 -- Didi Chuxing and Huolala were among the 10 car- and truck-hailing platforms that Chinese regulators summoned for talks today over excessive commission rates and other improper practices, China Transport News reported on its WeChat account.
There have been numerous complaints about such platforms recently, the regulators said. Car-hailers have been accused of high commission rates and revision of pricing rules at will, and the freight platforms have been criticized for monopolizing logistics data, manipulating freight rates and arbitrary increase of membership fees.
The talks involved eight regulators, including the Ministry of Transport, the Cyberspace Administration, the National Development and Reform Commission and the Ministry of Industry and Information Technology.
The platforms should reasonably decide the commission and information service fee level, and take the initiative to ensure proper remuneration for drivers, the watchdogs said. They should also rectify business practices that infringe on gig workers' rights, and decide their working hours to avoid excessive overtime and fatigue while driving.
Ride-hailing service providers should also be more transparent with drivers and passengers about the amount of payment, driver's remuneration and the platforms' commission rates, they said.
The regulators also required the platforms to accelerate the process of ensuring vehicle compliance, to strictly implement the requirements for drivers' background checks, and enhance the protection of users' personal information.
High commission rates among ride-hailing platforms have been in the news recently. Xinhua News Agency commented last week that some platforms exploit their dominant market position to rake in huge profits, thereby unbalancing the relationship between the platforms and the users. Xinhua found some charge a commission of up to 50 percent on each ride.
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