Han Ximin

1824295095@qq.com

DIDI Chuxing and Amap, two app-based cab-hailing service providers, have been reprimanded by Shenzhen authorities for disrupting market order and were ordered to clear 3,517 and 40 unqualified vehicles, respectively, from the market.

Amap was specifically required to dispatch passenger orders only to vehicles and drivers possessing valid app-based cab business operation certificates. The company was urged to comply with the law, enhance service quality and safety, and strive for market success through fair competition, rather than resorting to disruptive price wars.

The authorities emphasized the importance of honoring social responsibilities and considering the opinions of workers’ unions while formulating pricing policies that directly impact the interests and rights of the labor force.

Earlier in July, authorities in Wuhan and Ningbo also engaged in discussions with a dozen of cab-hailing service platforms to address management irregularities, nontransparent price fixing, and high commissions charged by these platforms.

On July 26, national authorities including the Ministry of Transport held talks with some app-based car-hailing service providers over risk concerns related to app-based car-hailing and aggregated service platforms.

Amap, an aggregated service platform, solely provides matchmaking information for passengers and vehicles. As China’s largest navigation service provider, it boasts 700 million users and facilitates an average of 340 million navigation services daily.

Based on its data, it offers app-based cab-hailing services through partnerships with cab-hailing service operators, facilitating passenger-vehicle matchmaking.

However, under the regulations governing app-based car-hailing services, aggregated service platforms like Amap, Tencent and Meituan are not allowed to directly get involved in dispatching vehicles, managing drivers, or influencing other platforms’ pricing policies.

Amap launched its car-hailing service in 2017, serving as a platform for small and medium-sized cab-hailing companies and individual cabs to get passengers. However, the company’s recruitment of vehicle owners without valid app-based cab business certificates led to disruptions in the market order, negatively affecting law-abiding cab drivers and passengers’ rights, regulators say.