Beijing to track delivery bikes with chips in a crackdown on dangerous driving behaviour to meet tight deadlines

Beijing will launch a pilot programme this year to install chips on bikes of delivery riders for Meituan, Ele.me and other courier services
It marks another move to regulate the delivery industry, which some have complained contributes to reckless driving

E-commerce

Coco Fengin Beijing

Published: 2:02pm, 20 Apr 2023

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Beijing’s transport authority plans to install chips on electric bikes used by couriers and food delivery riders to better track road traffic, marking another move to regulate China’s delivery industry.

A pilot programme will launch this year in the capital city to “actively monitor [traffic] violations”, the government-run newspaper Beijing Daily reported, citing a decision by the Beijing Municipal Commission of Transport.

The authority will amend local rules for non-motor vehicles to “improve the traffic violation reporting system and urge courier and delivery enterprises to establish a traffic violation log”.

The agency did not specify whether the government will foot the bill for the monitoring system. If delivery platforms such as Meituan and Ele.me are required to bear the cost, it could erode profit margins. Other Chinese agencies, including the labour ministry, are also pressing delivery platforms to improve gig worker welfare.

The growing popularity of e-commerce and food delivery over the past several years has created huge demand for couriers, who typically ride electric bikes with storage cases on the back. China has about 84 million gig workers, which includes delivery couriers and ride-share drivers, among other for-hire service providers, according to a March report from the All-China Federation of Trade Unions.

Delivery riders are often under pressure to meet tight deadlines, sometimes resulting in traffic violations like speeding and dangerous U-turns. In 2020, Meituan and Ele.me both relaxed delivery times after the dangerous driving behaviour of riders was publicised. Ele.me is owned by Alibaba Group Holding, owner of the South China Morning Post.

Many netizens on Chinese microblogging platform Weibo welcomed Beijing’s move. One user named Biguanchaichai said companies should have installed tracking chips earlier. “When walking on the pavement or crossing the street, I’m most afraid of delivery bikes that suddenly rush in front of me,” she commented.

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China’s delivery workers standby for last-minute orders during the Lunar New Year holiday

Another user with the pseudonym Xingkongxiadeshenhua also said speeding scooters should be strictly monitored.

Meituan, China’s largest food delivery firm, reported a 21.4 per cent increase in revenue in the quarter ended December, pulling in 60.13 billion yuan ($8.73 billion). Its net loss for the quarter narrowed to 1.08 billion yuan from a loss of 5.34 billion yuan a year earlier.

Authorities have previously taken efforts to regulate on-demand delivery services. Last year, Beijing conducted campaigns to train delivery personnel on the safe use of electric bikes and their batteries. In 2021, the State Administration for Market Regulation (SAMR) and six other government agencies issued guidelines to ensure delivery riders earn above the country’s minimum wage and have access to social security.

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