BUSINESS China to set upper limit on commission taken by ride-hailing platforms

BUSINESS

China to set upper limit on commission taken by ride-hailing platforms

CGTN

22:56, August 18, 2021

File photo: Xinhua

China is considering setting an upper limit on commission taken from drivers by car-hailing platforms, as a measure to safeguard workers' labor security rights in new forms of employment, the Ministry of Transport said Wednesday.

China's online ride-hailing industry has developed rapidly in recent years. There are 236 companies operating car-hailing platforms across the country, with more than 3.51 million licensed drivers engaging in such business, according to Li Huaqiang, deputy director of the ministry's transportation department.

However, Li said, the ministry has paid close attention to the fact that a few ride-hailing platforms have arbitrarily adjusted business strategies, such as pricing policies, after gaining a market advantage.

Meanwhile, they set excessively high platform fees, induce drivers to work overtime and practice fatigue driving, he said. "Such practices infringed on the drivers' labor compensation and rights such as rest."

The Ministry of Transport is working with relevant departments to improve working conditions and labor rights of car-hailing drivers and other groups, Li said.

Measures will be taken to regulate the operating behaviors of car-hailing platforms, requiring them to standardize pricing, set a ceiling for platform fees and announce the results to the public, he said.

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