Chinese Regulators Summon Ride-Hailing Firms Over Concerns in the Sector

Chinese regulators are raising concerns over with ride-hailing companies in the country concerning the sector, the regulators summoned firms like Meituan (HK: 3690), Didi Global Inc. (DIDI) and Caocao to discuss arising concerns in the ride-hailing sector.

According to the regulators, ride-hailing companies have been hiring unqualified drivers and using promotions which disrupt fair market order.

In the meeting, the ministry urged the companies to abide by relevant rules and protect security of clients’ data. The Ride-hailing service is a booming industry in China as tens of millions use this services on a daily basis in the country.

From time to time, the Chinese authorities hold meeting with ride-hailing firms and involved stake holders. The meetings touch on areas seeking to better the industry like drivers’ salaries and safety measures among other vital areas.

The regulators said that they have initiated a cyber-security probe to find out if Didi, the country’s largest ride-hailing company, used measures outside the law to attract new customers.

Leave a comment