Meituan Eliminates Overtime Fines, Shifts to Points‑Based Rewards and Rider‑Friendly Policies by 2025.

The decision follows a pilot program that began earlier this year in several cities across the eastern provinces. In those test markets, Meituan stopped deducting cash from riders who failed to meet strict delivery time windows, replacing the hard‑cash fines with a points‑based reward scheme known as the “安准卡” (Safety‑On‑Time Card). Under the new model, couriers who deliver within the promised window earn points that can be redeemed for bonuses, while those who lag accrue deductions that limit their ability to accept new orders. The company says the points system is designed to push riders to focus on overall service quality rather than a single metric of speed.

Industry analysts warn that the short‑term financial impact on couriers could be mixed. Many riders have come to rely on the overtime penalty as a lever to boost earnings – faster deliveries mean fewer fines and higher net pay. In the early weeks of the pilot, some couriers reported a dip in income, especially newer riders whose earnings had previously depended heavily on avoiding penalties. Yet Meituan officials argue that the longer‑term benefits outweigh the initial loss. By coupling the points system with algorithmic refinements – for instance, smarter order dispatch that groups nearby deliveries and reduces unnecessary travel – the platform hopes to maintain, if not improve, its on‑time delivery rate while easing the physical and mental strain on riders.

The policy change also dovetails with a broader push toward “rider‑friendly” initiatives that the company has been rolling out. In addition to the points framework, Meituan will introduce mandatory online training, clearer grievance channels, and a “fatigue‑prevention” protocol that automatically suspends a rider’s ability to take new orders once a daily working‑hour threshold (currently set at roughly 11.4 hours) is reached. The firm has pledged to accelerate the creation of “rider‑friendly communities” – localized hubs where couriers can access rest areas, medical checks and peer support – and to involve its labor union more directly in advocacy and welfare programs.

From a market perspective, the abolition of overtime fines could reshape competition among China’s dominant food‑delivery players, chiefly Meituan and its rival Ele.me. Both platforms have long relied on a combination of performance incentives and penalties to shepherd a massive, dispersed fleet of gig workers. By moving away from a punitive model, Meituan may force its competitors to reconsider their own enforcement structures, potentially nudging the whole sector toward more balanced, incentive‑based systems. Such a transition would, however, require significant investment in algorithm development and system upgrades—costs that Meituan acknowledges will rise as the company replaces the fine‑collection mechanism with more sophisticated dispatch logic and broader welfare provisions.

Beyond the balance sheet, the reform touches on a growing societal conversation about the rights of flexible‑employment workers in China’s digital economy. For years, couriers have complained about “over‑time penalties” as a source of undue stress, and labor groups have called for greater protection against exhaustion and arbitrary deductions. By publicly abolishing the fines and instituting a transparent, points‑based reward system, Meituan appears to be responding to both market pressures and the Chinese government’s recent emphasis on “platform governance” – a policy direction that urges tech firms to improve algorithmic fairness, protect worker rights, and enhance social responsibility.

In line with that policy thrust, Meituan has announced the formation of an “Algorithm Advisory Committee” made up of experts in law, sociology, and technology. The committee will oversee the refinement of the platform’s dispatch algorithms, ensuring they are not “black boxes” that trap riders in impossible performance expectations. The group will also host “Algorithm Co‑governance Open Days,” inviting regulators, scholars, and rider representatives to discuss and audit the logic that drives order allocation. Such initiatives echo broader governmental efforts to bring more transparency to the algorithms that underpin the gig economy, and they could set a precedent for other platforms both in China and abroad.

International observers are watching closely, as China’s food‑delivery market is the world’s largest and its practices often serve as a bellwether for gig‑economy regulation elsewhere. If Meituan’s reforms prove effective – maintaining high on‑time delivery rates while reducing rider stress and turnover – they may offer a template for platforms in the United States, Europe, and other regions grappling with similar labor‑rights debates. Conversely, should the removal of penalties lead to slower deliveries and customer dissatisfaction, the experiment could prompt a reevaluation of how incentives are calibrated in high‑speed service models.

Consumer reaction to the policy shift remains hard to gauge at this stage. Early social‑media chatter on Chinese platforms such as Weibo and Douyin has not yet coalesced into a clear narrative, perhaps because the announcement is still fresh and because the pilot’s data have not been fully released. In the short term, some diners may notice marginally longer wait times in the cities where the new system has taken hold. If that occurs, it could nudge public expectations, fostering a more nuanced view of the pressures facing couriers who have to navigate traffic, weather, and the ever‑growing volume of orders.

Overall, Meituan’s pledge to scrap overtime fines represents more than a tweak to its internal operations. It is a signal that the company, and perhaps the wider platform economy in China, is moving toward a model that attempts to harmonize efficiency with human dignity. By coupling algorithmic upgrades with concrete labor‑friendly measures, Meituan hopes to create a “sustainable, healthy” ecosystem for its riders, its merchants, and its millions of users. Whether the initiative will indeed reshape industry standards, improve social equity, or influence regulatory policy remains to be seen, but its rollout by the close of 2025 will undoubtedly be a milestone worth watching for anyone interested in the future of the global gig economy.