Laws must have teeth in regulating business

THE CENTRAL AUTHORITIES initiated a special investigation into the car hailing companies on Wednesday, beginning with Didi Chuxing, the largest player in the industry. Legal Daily comments:

This investigation, which involves 14 departments, came after two female passengers using Didi's Hitch service were allegedly murdered by their drivers. This is the first time the central government has organized such a large scale investigation into e-commerce enterprises, and it shows the government believes that technology and the market are not enough to regulate these new economy companies, which require more effective supervision.

After the second murder of a female customer in three months, Didi dismissed two senior management officials, and immediately after the authority's investigation started, it announced it had suspended its Hitch service, which many think is to cover up the loopholes in its management.