Chinese regulators have ordered ride-hailing platforms to correct unfair market tactics amid a crackdown on the internet sector that has spooked investors and shaved billions off the valuations of some of China’s biggest technology companies.
The logo for Didi is seen on the headquarters in Beijing on July 16, 2021. The ride-hailing industry led by Didi Global and Meituan employs millions, and platforms often jostle for market share by offering discounts and incentives.
The transport ministry, internet watchdog and other regulators on Wednesday ordered 11 such platforms by year’s end to stop unfair competition tactics and practices such as recruiting unlicensed drivers, according to a statement published Thursday. The Chinese government has expressed concern over the exploitation of such workers, as they often work long days and lack basic welfare benefits. China’s state union in July called for better protection of labor rights and encouraged gig economy workers to form unions to boost protections.Sector leader Didi has nearly 90% of the market in China, but China’s internet watchdog is investigating alleged data privacy violations.
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