Major ride-hailing service operators in China had been summoned for meetings by regulators over their alleged non-compliant behavior. The meetings with representatives of 11 ride-hailing firms come as China continues its regulatory crackdowns on runaway tech companies.
The Ministry of Transport, the Cyberspace Administration of China, and the State Administration of Market Supervision jointly conducted meetings with top ride-hailing service providers, including Didi, Meituan, and T3 this week.
The regulators discussed with representatives the current regulations governing their operations and their respective plans to adhere to rules. The Ministry of Transport said all of the companies had been required to immediately conduct reviews of their operations and to rectify existing issues.
Regulators said the companies have continued to violate regulations and they must rectify their "illegal behavior." These include business practices that threaten fair competition and healthy development in the ride-hailing industry.
According to officials, the companies that were summoned for the meetings had agreed to fix any problems and to stop illegal practices such as hiring unapproved drivers. Some of the other illegal behavior that was cited by regulators includes the use of fake promotions and discounts to entice more riders and drivers.
Regulators also required the companies to make sure that they comply with the proper approval process for their vehicles and drivers. They had also been told to halt transferring any business risk to drivers.
China's ride-hailing industry has been under regulatory scrutiny following reports of alleged worker abuse. In response, regulators have implemented new measures to protect riders, including requiring companies to provide enough rest times and to reduce the commissions they take from drivers for each ride.
Both Didi and JD.com have set up unions for their workers, which is a major step that is rare in China. Apart from protecting workers, regulators have also placed a heavy emphasis on protecting private user data. The companies were told by regulators that they should implement measures to safeguard their uses' data.
This year, regulators have passed two major laws governing data security and privacy. The law applies to all companies that collect and store user data through any of their platforms.