Ride-hail­ing gi­ant DiDi ‘out of con­trol’ on safety

Global Times US Edition - - BIZOVE -

Au­thor­i­ties an­nounced a broad crack­down on China’s ride-hail­ing in­dus­try on Wed­nes­day, tar­get­ing mar­ket leader Didi Chux­ing with fines, fol­low­ing the deaths of two pas­sen­gers in sep­a­rate in­ci­dents ear­lier this year.

DiDi has vi­o­lated mul­ti­ple safety rules, pre­sent­ing a “ma­jor safety haz­ard,” in­clud­ing fail­ing to flag high-risk driv­ers and im­prop­erly han­dling de­posits, the Min­istry of Trans­port said in a no­tice on an of­fi­cial so­cial me­dia ac­count.

“Driv­ers’ qual­i­fi­ca­tions and back­ground checks are not in place. The com­pany’s man­age­ment of peo­ple and ve­hi­cles is out of con­trol,” the min­istry said, re­fer­ring to DiDi, which ac­counts for around 90 per­cent of China’s ride-hail­ing mar­ket.

The min­istry said it would “se­verely crack down” on ride-hail­ing providers that hire il­le­gal driv­ers and fine DiDi’s ex­ec­u­tives and le­gal rep­re­sen­ta­tives an undis­closed amount.

In re­sponse to the results of the in­ves­ti­ga­tion, Didi said in a state­ment sent to the Global Times on Wed­nes­day that the com­pany “ap­pre­ci­ates the thor­ough and de­tailed in­spec­tion and re­view of the joint in­spec­tion group, and will start to im­ple­ment the re­quire­ments of the joint in­spec­tion group for the or­derly and healthy de­vel­op­ment of Didi and the in­dus­try.”

It said the Hitch ser­vice will re­main sus­pended in­def­i­nitely. DiDi drew wide­spread crit­i­cism on so­cial me­dia ear­lier this year af­ter two women were as­saulted and killed in sep­a­rate in­ci­dents in­volv­ing driv­ers us­ing its car­pool ser­vice, DiDi Hitch.

The com­pany also apol­o­gized to the fam­i­lies of the de­ceased and the pub­lic for caus­ing a “bane­ful in­flu­ence” on so­ci­ety and the in­dus­try.

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