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China’s market regulators have extended their scrutiny of Chinese technology companies to the ride-hailing sector, warning Didi Chuxing and nine other company executives not to manipulate prices and monopolize data.
On Friday, executives from 10 companies that operate ride-sharing and freight platforms were invited to attend meetings of eight government departments, including the State Administration for Market Regulation, the Ministry of Transport and the Ministry of Public Security. Operates “China Communications News”.
Ride-hailing platforms were told to solve some problems, including excessive driver costs, an opaque mechanism for profit sharing, and arbitrary price changes. The freight platform was told to monopolize transportation data, drive down industry prices and randomly charge additional membership fees.
Independent technology analyst Will Tao said the subpoena is part of a growing movement by Chinese regulators to rule its Internet giants and enforce new rules to break monopolies and ensure user data is protected.
After regulators unexpectedly cancelled Ant Group’s blockbuster public offering, the movement adjusted to make Chinese Internet entrepreneurs run counter to the Chinese Communist Party’s desire to control the market and reduce anti-competitive practices.
Since Didi Chuxing, and since Uber withdrew from the market in 2016, platforms backed by SoftBank have always dominated China’s ride-hailing industry. Its e-commerce group Meituan’s smaller local competitor, Meituan Chuxing ) And Geely, the private Chinese car-hailing division Cao Cao Mobility. Both Full Truck Alliance and Huolala are the freight platforms of the conference.
Didi Chuxing is expected to be listed on the New York Stock Exchange later this year, but has long maintained a tense relationship with the authorities. A series of security incidents Even the suspected murder incident involved his driver in 2018, leading the police to issue a severe warning and to stop the company’s carpooling service.
In March, the Ministry of Transportation criticized Didi again, when drivers complained that the company had increased passenger prices without appropriately raising its wages.
Didi responded last week, promising to be more transparent, and released a breakdown of the average cost per order in 2020. It said that in most cases, drivers received nearly 80% of the compensation, but “very few” cases were rare. The organization stated that the company only charged 2.7% of the cost, while the company only charged the total cost of travel. 30%.
Tao said that part of the government’s motivation for convening these companies was to ensure social stability for the millions of drivers who make a living on the Didi platform. He said: “In a city like Beijing, there are thousands of drivers who know each other and can organize protests.” “The authorities want to avoid this.”
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