(Yicai Global) Sept. 15 -- Food delivery giants Meituan and Ele.me said they will not oblige couriers to register as individual businesses. The pledge came after news spread on social media this week that riders are required to register as sole traders so platforms can sidestep insurance payments and other obligations. 

Meituan said in a statement yesterday that it has sent a notice about this to all partners, and will make them sign commitment letters next week to strengthen platform supervision. The Beijing-based company also said it has also set up a complaints hotline for feedback.

Ele.me said today that employers should not avoid responsibilities by inducing workers to register as individual businesses. The Shanghai-based firm said it is actively promoting new occupational injury insurance for its delivery workers, and will implement more programs that focus on couriers’ health and income.

Individual business refers to where a worker is held personally liable for debts and obligations. Some human resources companies have allegedly been asking gig workers to register as individual businesses so that platforms can avoid paying insurance and thereby cut labor costs.

Industry practitioners have said that banning this practice will help define proper liability as well as providing a more standardized working environment for delivery staff.

Chinese regulators summoned 10 leading internet platform operators, including Meituan, Didi Chuxing and Ele.me, for talks at the end of last week amid a push to curb exploitation of workers in the gig economy.

Editor: Tom Litting