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Chinese delivery giants Meituan, Ele.me pledge to not force drivers to register as independent businesss

Added 09-15-21 04:04:02am EST - “China's online food delivery giants Meituan and Ele.me both said this week they will not force couriers who do work for them to register as independent businesses, a bone of contention amid ongoing scrutiny of the food delivery sector.…” - News.yahoo.com

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Posted By TheNewsCommenter: From News.yahoo.com: “Chinese delivery giants Meituan, Ele.me pledge to not force drivers to register as independent businesss”. Below is an excerpt from the article.

SHANGHAI (Reuters) - China's online food delivery giants Meituan and Ele.me both said this week they will not force couriers who do work for them to register as independent businesses, a bone of contention amid ongoing scrutiny of the food delivery sector.

The promise comes as part of a broader push from regulators to improve conditions for 'gig-economy' workers, and during ongoing public scrutiny towards tech companies treatment of said drivers.

In August, several Chinese regulatory bodies met with a number of Chinese food delivery companies to call for better labour safeguards.

Many drivers for food delivery or ride-hailing apps are hired indirectly by the platform and do not receive basic social or medical insurance https://www.reuters.com/world/china/chinese-regulators-meet-with-delivery-firms-call-stronger-labour-rights-2021-08-07.

This past week, a social media account covering labour law published an article alleging some drivers working for Meituan and Ele.me were operating as individual businesses, as opposed to employees of the platform company or a third-party company, thereby reducing the platform company's legal obligations to the driver. The piece spread widely across China's internet.

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