Meituan told to clean up or have permit voided

Meituan Dianping was given an ultimatum by Shanghai Transport Commission yesterday to stop and banish all unlicensed drivers and vehicles using the online ride-hailing platform to take passengers.

The move came just one day after Meituan was fined 100,000 yuan (US$16,000).

The traffic authority also urged the company to immediately stop illegal competition — such as unfair pricing strategies — with other ride-hailing companies.

The lifestyle service provider drove into the ride-hailing market in Shanghai on March 21, but was soon in trouble with the traffic authority, receiving a warning for its licensing and advertisement strategies.

Meituan was ordered to connect all of the data of its drivers and cars to the city’s official supervisory system on the same day.

However, it has failed to do so. As of yesterday, according to the traffic authority, Meituan’s data were still not linked to the supervisory system. 

The law enforcement department of the traffic authority said Meituan must resolve the matter within seven days, otherwise it faces being the first online ride-hailing platform to have its certificate revoked in the city.