China's Ministry of Transport demands compliance of ride-hailing platforms

China's Ministry of Transport said Wednesday that it recently issued a notice on accelerating the compliant operation of the ride-hailing industry to further maintain fair competition in the market order and promote the healthy sustainable development of the industry.

The notice requires local transport authorities to urge ride-hailing platforms to operate in accordance with the law and speed up the process of ride-hailing compliance.

Effective immediately, these platforms are not allowed to grant new access to non-compliant vehicles and drivers, and should accelerate the retirement of non-compliant drivers and vehicles.

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Local regulatory authorities should strengthen supervision and enforcement, increase the crackdown on ride-hailing illegal operations, and continue to maintain a high-pressure situation, the notice said.

For ride-hailing platforms that continue to provide access to non-compliant vehicles and drivers, local regulatory authorities should investigate and deal with them in accordance with the law and report the situation to the Ministry of Transport, the notice said.

Local regulatory authorities should strengthen supervision and enforcement, increase the crackdown on ride-hailing illegal operations and continue to maintain a high-pressure posture, the notice said.

Local transport authorities should cooperate with relevant departments to increase random inspections and investigate and deal with illegal and unlawful acts such as low price dumping, price discrimination using big data and fraudulent baiting, the notice said.

The notice also requires local regulators to regulate the pricing behavior of ride-hailing platforms, reduce the excessive percentage of draws and protect drivers' access to reasonable labor compensation and rest time.

Starting in September 2021, the Ministry of Transport will publish the compliance rates of ride-hailing platforms in 36 central cities on a monthly basis.

For cities with non-compliant vehicles and drivers, the Ministry of Transport will issue a list, according to the notice.