Meituan reportedly ditches fixed commission fee as local regulators increase the heat on Big Tech
- The Shanghai consumer rights council ordered Meituan and Pinduoduo to abandon the mindset of solely pursuing user traffic on their platforms
- Meituan’s business practices were found to be problematic when it came to offering refunds for cancelled orders
Delivery giant Meituan is moving away from the fixed commission fee it charges restaurants to one that takes into account distance, price, and time of the delivery, according to local media reports.
The new rules could drastically change how much restaurants are able to make on each order, although how much eateries will be affected remains unclear until the new fee structure is officially unveiled.
Meituan did not immediately reply to a request for comment.
The reported fee restructuring comes after the Shanghai consumer rights watchdog summoned representatives from Meituan and Pinduoduo, China’s leading discount e-commerce platform, for “a lecture” on protecting consumer rights.
The Shanghai Consumer Council ordered both companies to abandon the mindset of solely pursuing user traffic on their platforms, and instead to focus on better protecting consumer rights and interests.