Food delivery platforms in China, including Meituan and Alibaba’s Ele.me, have drawn severe criticism on social media for their treatment of delivery riders, most of whom are not covered by basic social and medical insurance.
Both, Meituan and Alibaba’s Ele.me did not immediately respond to Reuters’ requests for comment.
Meituan has been working with the government to purchase employment injury insurance for its delivery drivers, the company’s chief executive officer Wang Xing said on a conference call in May. Investors are worrying about the rising cost of employing riders by the platforms, Reuters had previously reported.
Meituan’s Hong Kong-listed shares slumped nearly 14%, against a 4.13% drop in the Hang Seng Index.