China‘s Transport ministry said on Friday it had summoned four cargo service platforms including Didi Freight, the cargo division of Didi Chuxing, and Huolala over “operational irregularities”.
The ministry said it told the firms to make rectifications as there had been concerns over how they increased membership fees and also engaged in cut-price competition.
The ministry also said it issued “reminders” to four ride-hailing firms including Didi Chuxing, Geely’s Caocao Mobility and Meituan about protecting the rights of ride-hailing drivers and ensuring stable operations over the upcoming Lunar New Year holiday.
Chinese authorities have come down hard on Didi, after its New York Stock Exchange listing in June, demanding that it take down its app from mobile app stores while the Cyberspace Administration of China (CAC) investigated its handling of customer data.
Last month, Didi Global reported a 1.7% decline in third-quarter revenue, as its domestic business took a hit from a regulatory crackdown.
At the same time, Daniel Zhang, the chief executive of Chinese e-commerce giant Alibaba Group Holding, resigned from Didi’s board and was succeeded by Yi Zhang, a senior Alibaba legal director.
- Reuters with additional editing by Sean OMeara
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