China Tells Ride-Hailing Platforms to Make Pricing Rules Transparent
Zhang Ke
DATE:  Feb 24 2022
/ SOURCE:  Yicai
China Tells Ride-Hailing Platforms to Make Pricing Rules Transparent China Tells Ride-Hailing Platforms to Make Pricing Rules Transparent

(Yicai Global) Feb. 24 -- China’s transport ministry has told online ride-hailing and road freight operators to disclose their pricing rules to the public this year.

Firms should set reasonable caps on commissions or membership fees and make them public, Wang Xiuchun, deputy director of the transport ministry’s transport services department, said at a press conference today. They should display the commission rate for each order in real time on the driver’s side, he said.

According to media reports, surveys show that platforms and companies pocket as much as 25 percent, or even 35 percent.

Wang added that the ministry will also strengthen the tracking and supervision of online ride-hailing platforms and companies to ensure the goals are accomplished. No effort will be spared in safeguarding the legitimate rights and interests of employees in the sector, he said.

In terms of road freight, major platforms will be urged to disclose their pricing rules to the public, and set a reasonable upper limit on commissions and membership fees, which should also be made public.

The ministry previously spoke with the authorities of major cities and main platforms and companies, Wang noted. They have now responded and are formulating their own specific implementation plans in accordance with the requirements.

Online ride-hailing drivers have continuously reported various issues, including high commission rates and unreasonable dispatch rules, since last year, Yicai Global learned from the transport ministry and other local authorities.

Editors: Xu Wei, Peter Thomas

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Keywords:   Ministry of Transport of China,Online car Hailing,Supervision