Car-pooling firms Hellobike, Dida Chuxing to update service after government warning for allowing drivers to profit
- Hellobike and Dida Chuxing have made changes to their car-pooling platforms after the Ministry of Transport accused them of offering ride-hailing services
- The government distinguishes between ride-hailing and car-pooling, which limits what drivers can charge to transport costs like fuel
Chinese car-pool service providers Hellobike and Dida Chuxing said that they will modify their platforms after receiving a government warning, led by the Ministry of Transport, for suspicion of “engaging in online ride-sharing business in the name of car-pooling”.
In separate statements on Thursday, Shanghai-based Hellobike and Beijing-based Dida Chuxing said that they will “rectify” operations, ensuring that their car-pool drivers will not be able to monitor the orders of nearby riders and change their routes to accommodate them.
“Profile photos show a user’s gender information, and there are hidden security risks in offering long-distance, intercity services,” the Ministry of Transport said in its statement on Tuesday. “The platforms should amend the car-pooling services to eliminate security risks.”
In China, car-pooling and ride-hailing are distinct services. The government defines ride-hailing as a commercial activity, whereas car-pooling is a supplemental service that might be offered by a driver headed in the same direction as someone requesting a ride. National regulations require the price of a car-pool service to be limited to costs of travel, such as fuel and tolls. Local governments also limit the number of car-pool trips a driver can offer each day.
Dida said in a statement that it does not allow car-pool drivers to use its service for profit.
“Dida Chuxing has changed the ‘nearby order’ function to a ‘temporary route’ for drivers, so they can only put in their travel information in advance and the system will quickly match passengers en route,” the company said.