China’s transport ministry summons cargo service firms over operational issues

A man is seen under a Didi logo at the headquarters of Didi Chuxing in Beijing, China November 20, 2020. REUTERS/Florence Lo

SHANGHAI, Jan 21 (Reuters) – China’s transport ministry on Friday summoned four cargo service platforms including Didi Freight, the cargo division of Didi Chuxing (DIDI.N), and Huolala over “operational irregularities”, according to an announcement from the ministry.

It said it told them to make rectifications as there had been concerns over how they had increased membership fees and also engaged in cut-price competition.

The ministry also said it issued “reminders” to four ride-hailing firms including Didi Chuxing, Geely’s (GEELY.UL) Caocao Mobility and Meituan (3690.HK) over protecting the rights of ride-hailing drivers and ensuring stable operations over the upcoming Lunar New Year holiday.

Reporting by Josh Horwitz; Editing by Himani Sarkar

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