Meituan Shares Slump on China's Strengthening Delivery Driver Protection

7月27日

BEIJING, July 26 (TMTPOST)— After China’s regulators released new regulations to strengthen protection of delivery drivers, shares of Meituan Dianping slumped almost 14% on Monday, a record daily selloff since the Chinese food delivery giant listed in Hong Kong in September, 2018.

According to guidelines issued by seven authorities including the State Administration for Market Regulation of China (SAMR), food delivery online platforms have to set up the income distribution system which matches drivers’ workload and labor intensity, so as to ensure their income no less than minimum wage in the local labor market. As to job safety, the platforms shall improve orders distribution with optimized delivery route and reduce drivers’ workload.

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