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