Intracity Logistics Platform Huolala Fined 400,000 Yuan

According to Chinese business data site Tianyancha, Shenzhen Yishi Huolala Technology Co., Ltd., the operator of intracity logistics platform Huolala, was fined 400,000 yuan ($63,346) on Thursday by the Futian Bureau of the Shenzhen Administration for Market Regulation. The penalty was incurred because the firm failed to publicly solicit opinions on the modification of service agreements and trading rules in accordance with the law.

Also on Thursday, Chinese media outlet was informed by the Shanghai Municipal Transportation Commission that its enforcement team had held interviews with three cargo service platforms including Didi Freight, which is the cargo division of Didi Chuxing, GOGOX and Huolala. The platforms are explicitly required to thoroughly review their registered vehicles operating in Shanghai, ensure the authenticity of vehicles and personnel information, prohibit non-qualified vehicles and personnel from accessing the platform, and formulate plans for the removal of non-compliant vehicles. In case of overdue rectification and serious violations, they will be subject to a fine of up to 500,000 yuan.

In January this year, the country’s Ministry of Transport scheduled a meeting with four digital logistics companies, including Huolala. It was pointed out that truck drivers have recently reported that the platform arbitrarily revised pricing rules, increased membership fees, induced vicious low-price competition and carried out excessive overloading and illegal transport, among other issues. This behavior allegedly infringed on the legitimate rights and interests of practitioners, and provoked general dissatisfaction among truck drivers and broader social concerns.

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At their recent interview by authorities, these companies were asked to face up to their own problems, conscientiously implement their primary responsibilities as a business enterprise, and immediately rectify their problems.

Data suggest that, as of March 2021, Huolala operated business in 363 cities in mainland China, with an average of 580,000 monthly active drivers and 7.6 million monthly active users.