Chinese Government Wants To Bring Ride-Hailing Company To Order

Geely Cao Cao, a ride-hailing service that penetrated China. (photo: padaily)

JAKARTA - The Chinese government summoned 11 ride-hailing companies including Didi Global Inc, Geely's Caocao and ride-hailing unit Meituan to a meeting. According to the Ministry of Transport on Thursday, September 2, this meeting was held to discuss points of concern in this sector.

According to the Ministry, at a meeting held on Wednesday, September 1, the authorities highlighted the recruitment of unqualified drivers and the use of promotions that disrupt fair market order.

Regulators urge ride-hailing companies to comply with relevant rules and protect data security.

Regulators have held frequent talks with the ride-hailing industry, which offers tens of millions of trips a day in China, on topics of driver salaries, safety and other issues.

Regulators launched a cybersecurity investigation into Didi, China's leading online transportation company, following its initial public offering in New York in June. Since then other companies jostled to attract new customers.

Ride hailing is a transportation service that uses an online platform, such as an application on a smartphone that connects passengers and drivers. Ride-hailing users must determine their destination and then book a vehicle along with the driver before traveling.

After that, users just sit quietly in the vehicle until they reach their destination. Using ride-hailing-based transportation services is known to be practical and efficient. The prices given by transportation service providers are also quite affordable, especially if there are promos.

In addition to delivering users to their destination, ride-hailing also provides services to deliver goods, from large items to small ones, such as food, documents, and others. Ride-hailing-based transportation services are user-oriented or customer-oriented. In Indonesia, ride-hailing includes Grab and Gojek.