Shanghai fines Didi, Meituan for illegal ride-hailing practices

Online ride-hailing platforms Didi and Meituan were fined 5.5 million yuan (783,955 U.S. dollars) and 1.47 million yuan respectively in July for illegal practices.

The logo of Didi Chuxing is printed on the door of a car. [File Photo: IC]

Transport and communications authorities in Shanghai for the first time launched a joint on-site inspection into online ride-hailing platforms on Monday and Tuesday.

At the Shanghai branch office of Didi Chuxing on Tuesday, inspectors found that Didi sent car-hailing orders to drivers and vehicles without operation qualifications and thus imposed a penalty of 200,000 yuan.

In July, a total of 21 inspections into 14 online car-hailing platforms were carried out, with 114 tickets being issued for illegal activities including platform's failure to remove unlawful taxis and share all car-hailing information in real time with the authorities.

Inspectors said that further actions, including removing the car-hailing service apps from app stores and suspension of businesses, will be taken if the platforms fail to rectify their unlawful business activities.