On May 8, the Cyberspace Administration of China announced that the governance of algorithms on life service platforms has achieved initial results. Key platforms such as Meituan, Taobao, and Didi have completed multiple algorithm optimization adjustments. For instance, Meituan has canceled overtime penalties, while Didi drivers are forced to rest for 6 hours after 10 hours of online service within 24 hours.
The Cyberspace Administration of China summarized the initial results of this round of algorithm optimization from seven aspects, including optimizing order allocation algorithms, time estimation algorithms, security guarantee algorithms, income extraction algorithms, pricing algorithms, complaint handling, and enhancing algorithm transparency.
In terms of optimizing order allocation algorithms, related platforms have taken measures such as prioritizing nearby orders, resisting unreasonable differentiated orders, setting simultaneous order limits, and enhancing the autonomy and choice of orders. For example, Didi and T3 prioritize distance as the primary factor in order allocation, with the vast majority of orders being taken by the nearest driver. Huolala does not assign orders, and all orders are taken by drivers voluntarily, with 93% of orders being determined by the “nearest priority” principle. Meituan, Taobao, and JD.com provide at least four unconditional refusal or transfer opportunities for different types of riders.
In terms of optimizing time estimation algorithms, related platforms have set flexible delivery times, alleviated the difficulty of last-mile delivery, basically canceled overtime deductions, and optimized anti-fatigue algorithms. According to reports, Meituan, Taobao, and JD.com have displayed estimated delivery times in time segments on the consumer side. Meituan is exploring the possibility of reserving at least 15 minutes of delivery time for riders in certain scenarios. Meituan has also led the way in canceling overtime penalties, while Taobao and JD.com have implemented measures to reduce direct deductions and penalties.
In terms of optimizing anti-fatigue algorithms, key platforms have successively launched anti-fatigue measures. Meituan has introduced a “4-hour and 8-hour reminder” system, which forces riders to take a break after 12 hours of cumulative running time. Didi drivers are forced to rest for 6 hours after 10 hours of online service within 24 hours.
In terms of optimizing income extraction algorithms, Didi has reduced its commission rate from 29% to 27% and launched a “refund treasure” system to automatically refund excess commissions. Gaode has reduced its information service fee to 9%. Manbang and Didi have established a low-price freight warning mechanism. Manbang has improved its dispute resolution mechanism, including rapid settlement, legal pursuit, and compensation.
To enhance algorithm transparency, platforms have optimized order information display. For instance, Didi has extended the query time for order fees from 30 days to 90 days. Taobao displays the corresponding subsidy amount for each order, taking into account factors such as order weight, category, quantity, and route difficulty.
On February 3, the Central Cyberspace Administration held a meeting to promote the implementation of the “Negative List of Algorithm Governance for Life Service Platforms (Trial)”. The administration stated that life service platforms have greatly reduced transaction costs, satisfied people’s livelihood needs, and created new employment opportunities through algorithmic matching, operation, and information exchange. However, algorithmic problems such as black boxes, discrimination, and collusion have also arisen, attracting widespread social attention. The “Negative List” aims to accurately and effectively solve these problems, making algorithms better serve the people’s livelihood.
The Central Cyberspace Administration stated on May 8 that the governance of algorithms on life service platforms has achieved initial results, but some platforms still exist “selective rectification” and “wait-and-see” problems. Next, the administration will further press platforms to take responsibility, organize special inspections, evaluate effects, and supervise progress. Platforms with serious problems will be punished according to the law.
