Shanghai’s market watchdog has imposed an RMB 500,000 fine on food delivery app Ele.me for misleading consumers on prices and food safety.
A short video showing individuals putting out the flames engulfing a deliveryman working for Ele.me in Jiangsu province went viral on Chinese social media.
Ele.me is criticized for its treatment of the family of a deliveryman who died on the job. The US may ban American investors from Alibaba and Tencent.
Since Ele.me was acquired by Alibaba, the company has escalated a cash-burning subsidy war with Meituan Dianping
The news also immediately comes after a delivery partnership between Luckin and Meituan was announced in December 2018.
Rumors started on Wednesday, August 8 that Alibaba, the holding company of Ele.me and Koubei, would merge these two companies and seek to raise $3 billion. Japan’s SoftBank was said to lead the investment.
Authorities call on leading app operators to stop collecting user data without permission amid concerns over leaks.
Ele.me’s service expansion follows on the heels of rival Meituan’s widened logistics services.
The crackdown comes as World Consumer Rights Day approaches on Mar. 15 when CGTN airs its annual “315” consumer protections TV special.
Ele.me and HelloBike have moved into a new partnership for sharing users base with each other.