Food delivery platforms to do away with financial penalties, sparking debate

China’s leading food delivery platforms, Eleme and Meituan, are set to eliminate financial penalties for delayed deliveries, marking a significant shift in the industry’s operational framework. This move has sparked a heated debate among stakeholders, with mixed reactions from delivery riders and market observers. Eleme announced via its official WeChat account that it is piloting a revised service-points mechanism in select cities, including Nantong, Changzhou, Jieyang, and Jingdezhen. This new system replaces direct monetary fines with point deductions, aiming to incentivize better performance and reward high-quality service. The company plans to expand this initiative to more cities by October. Similarly, Meituan has been testing a ‘non-penalty mechanism’ in over 30 cities and has committed to completely abolishing late-delivery fines by the end of 2025. While some delivery riders, like Li Yingke, welcome the change, citing reduced pressure to rush, others, such as Zhao Xuena, express concerns over potential wage impacts due to lower service scores. The industry’s shift reflects a broader trend toward balancing efficiency with worker welfare, though its long-term implications remain to be seen.