Meituan to end late delivery penalty amid regulatory crackdown on algorithm misuse

Chinese food delivery giant Meituan will phase out a late delivery penalty in 2025 amid a crack down by regulators on internet platforms’ misuse of algorithms.

The Beijing-based company said it would continuously optimise its management practice and explore fairer and more human-centric incentive mechanisms after it abolishes the fine, according to a notice published on its website on Friday.

The move aims to incentivise food delivery riders for on-time deliveries instead of penalising them, the statement added.

The policy shift was announced as part of a raft of changes to the company’s overarching algorithms that determine a series of operational procedures for its army of couriers, from the sequence of picking up orders to the routes they take, to ensure speedy delivery.

Although the algorithms and the late delivery penalty policy have effectively helped the company stay ahead of competitors like Alibaba Group Holding’s Ele.me, they have also sparked controversy. The strict delivery deadlines have previously prompted couriers to violate traffic rules, leading to accidents. Alibaba owns the Post.