Uber Chengdu has suspended thousands of its driver accounts, China Business Journal on Monday reports.
It is reported that Uber drivers, whose accounts have been banned, have gathered at the QingYang district police station where Uber Chengdu has its business registration. Drivers are demanding they receive the account balances from their suspended Uber accounts.
Announcing via Weibo today, Uber Chengdu claimed suspensions were due to fraud or ‘Shua Dan’ – the Chinese term for fake trip – detected when drivers claim compensation for deliberately falsifying trips.
According to Uber China’s driver service center, fraud committed by drivers or passengers can usher in the permanent suspension of accounts and confiscation of account balances.
Uber Shanghai has also punished drivers for the same fraud practice. A few suspended drivers last month picked fights with Uber staff after negotiations broke down over account balances. Police were later called to the scene.
Uber founder and CEO, Travis Kalanick claimed at the Baidu World Conference earlier this month, that Uber China sees over one million transactions per day. Uber Chengdu is among Uber’s top 10 cities for business development in the world, according to the statement it released today.
Uber Chengdu was investigated by the Chengdu Traffic Management Bureau in May but operations have not been influenced. Last month, a case was filed against an Uber Chengdu driver for robbery and molestation of a female passenger.
Apart from the new regulatory climate which will soon affect all ride-hailing services in China, regulating its own operations remains a problem for Uber.