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Shanghai Warns It Will Take Down Inspection-Failing Ride-Hailing Services

By Zhao Runhua / Aug 14, 2019 02:41 PM / Politics & Law

Photo: IC Photo

Photo: IC Photo

The Shanghai government is losing patience in regulating ride-hailing services, and warned operators that their apps could be taken down if they fail further inspections.

Ride-hailing giant Didi Chuxing and lifestyle platform Meituan Dianping were fined 5.5 million yuan ($783,353) and 1.47 million yuan, respectively, for operating vehicles failing to meet regulations in a July inspection. However, in later inspections, they were still arranging rides for unqualified vehicles and drivers, the Shanghai Municipal Transportation Commission said on its official WeChat account Tuesday.

Each day between Saturday and Monday around 82% of 15,000 unqualified ride-hailing vehicles were operated by Didi, and over 15% by Meituan, according to the Commission. The two companies have to yet to comment on the issue.

The Commission said if the platforms refuse to suspend related services or fail to meet requirements, it would work with other agencies to implement harsher punishments, including removing their ride-hailing apps and taking their services offline for six months.

The Commission said it will strengthen its inspection into the industry and expand collaboration with public security units in the future.

Related: Didi Chuxing Removes 306,000 Drivers From System for Safety Vetting

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