(Yicai Global) March 22 -- Three government departs in Shanghai have called in Meituan Dache, Meituan Group's ride-hailing platform which hopes to take on Didi Chuxing, to offer stark warnings that ensure the newcomer abides by local regulations.
Meituan rolled out its ride-hailing services in Shanghai yesterday, and the city's Municipal Transport Commission, Public Security Bureau and Price Bureau were quick to call the company's top executive in. The departments warned that all registered vehicles and personnel must obtain relevant ride-hailing licenses and register their data with the local regulatory platform before they get to work.
Meituan and the world's largest car-hailing provider Didi Chuxing Technology Co. have been at loggerheads after announcing plans to step into each other's primary market. As Meituan moves into ride-hailing, Didi is branching out into meal delivery services, sending freshly prepared food from restaurants to customers at home.
The city laid down the law with regards to reasonable and transparent pricing, warning that Meituan Dache must not operate at less than cost price to subdue competitors or monopolize the market, which would undermine national interests and the rights of other operators. The ride-hailing app will also not be permitted to allow customers to offer tips; and drivers are not able to see where passengers are headed before accepting fares.