Refer China: CHN's Food Delivery Giants Are Scrapping Late-Delivery Penalties

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In a significant move aligned with broader efforts to improve labor conditions in China, the country's two food delivery giants, Eleme and Meituan, are set to abolish financial penalties for delayed deliveries. This pivotal shift from a punitive model to a positive incentive-based approach marks a new chapter for the millions of workers in the platform economy.

Moving Away from Punitive Measures

The widely criticized practice of deducting a rider's pay for a late delivery is now being phased out. Eleme is actively trialing a new "service-points" mechanism in selected cities, including Nantong, Changzhou, Jieyang, and Jingdezhen. Under this new system, direct monetary fines are replaced with point deductions. Riders are then motivated and rewarded for high-quality service, as they can recover lost points and earn additional incentives, creating a more constructive and respectful management model.

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The pilot is expected to roll out to more cities within October.

Meituan, the other major player in the market, is making a parallel commitment. After running trials for a "non-penalty mechanism" in more than 30 cities, the company has publicly pledged to completely eliminate all late-delivery fines by the end of 2025. This clear timeline sets a new standard for the industry and solidifies the direction of travel.

This transformation extends beyond the removal of penalties. Both platforms are implementing complementary measures focused on enhancing rider safety and overall well-being. These include the introduction of AI-powered voice reminders to promote road safety and the optimization of mandatory break systems to help combat rider fatigue. This comprehensive strategy acknowledges that a fair and supportive working environment is essential for a sustainable workforce.

Source:

Editor: Crystal H

Refer China

CHN's Food Delivery Giants Are Scrapping Late-Delivery Penalties

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