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Didi, Meituan fined in China for using unlicensed vehicles in ride-hailing fleet

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Didi, Meituan fined in China for using unlicensed vehicles in ride-hailing fleet

Local authorities in China have imposed fines on Didi Chuxing Technology Co. Ltd. and Meituan Dianping for providing ride-hailing services using unlicensed vehicles, Reuters reported Aug. 13, citing the Shanghai transportation and communications commission's post on its WeChat social media account.

According to the report, about 80% of the unlicensed vehicles were identified as part of Didi's ride-hailing fleet, while 15% were hired by Meituan Dianping.

Didi, which counts Toyota Motor Corp., Softbank Group Capital Ltd. and Booking Holdings Inc. as its major backers, was fined 200,000 yuan by local authorities while Meituan Dianping is facing a 30,000 yuan fine, the report said.

In July, Didi and Meituan Dianping had reportedly already been fined 5.5 million yuan and 1.5 million yuan, respectively.

Local officials said the companies' smartphone applications could also be suspended if they fail to comply with industry standards, the news wire added.

Didi said it is actively communicating with authorities and that it will continue pushing for their driver's compliance, while Meituan Dianping declined to comment, Reuters reported.

As of Aug. 13, US$1 was equivalent to 7.05 yuan.