According to Henan Business Daily‘s report published on Wednesday, several regulatory authorities in China’s Henan Province jointly interviewed five online car-hailing companies including DiDi Global Inc., Jiangnan Chuxing, Quanmin Chuxing, Partake and Cuichi Travel.
This interview pointed out that some firms recently had opaque pricing models, allocated orders for non-compliant vehicles and car-hailing drivers, while also illegally operating inter-city passenger routes relying on online car-hailing. The above mentioned platforms had also raised the proportion of platform-operator revenue splitting, and had unusual dispatch methods which lead to overtime work for employees and fatigued drivers. These practices had not only disrupted the fair competition and market order, but had also undermined sector security and stability as well as the legitimate rights of both drivers and passengers.
Didi’s compliance data was specifically pointed out by authorities. From November 2021 to February 14, 2022, the firm had a total of 34,378,512 online car-hailing orders, ranking first in Henan Province. Among them, the number of orders completed by compliant vehicles was 19,759,635, and the order completion rate was 57.48%. The company’s compliant drivers completed 26,177,823 orders while the order completion rate held at 76.15%.
The regulator requested that the online car-hailing companies investigate their existing problems and potential safety and stability risks, conduct operations in accordance with laws and regulations, and promote the standardized, healthy and sustainable development of the car-hailing industry.