Major Chinese food delivery platforms are replacing late delivery fines with incentivized, point-based systems in a move to increase driver welfare, Shanghai-based news outlet The Paper reported Thursday.

Chinese e-commerce giant JD.com announced on the same day the launch of a food delivery pilot program in 25 cities — including in the southern Shenzhen, the eastern Nanjing, the northeastern Harbin, and the central Wuhan — replacing driver fines for overdue orders with a points-based rating system that evaluates drivers’ overall service.

Under the pilot rules, drivers will no longer face immediate cash deductions for late deliveries. Instead, points will be deducted from their “service score” based on the extent of the delay, moving away from a punitive approach.

“We hope that through a more humanized management approach, drivers can serve users with greater peace of mind while ensuring safety,” a JD.com representative told reporters.

JD.com said that the changes are crucial to enhancing driver welfare. Besides eliminating late penalties, it intends to improve driver experience by providing subsidies during extreme weather, specialized education funds for drivers’ children, and upgraded insurance.

The platform said it will refine this initiative based on pilot results before a national rollout. JD.com currently provides social insurance for 150,000 full-time drivers.

On Aug. 26, Chinese food delivery giant Meituan announced at a forum in Beijing that it would eliminate late delivery penalties for drivers by the end of 2025.

Meituan has already addressed key delivery challenges, such as reduced access to gated communities and correcting inaccurate addresses, through its “driver-friendly community” initiative. Through the use of QR codes that grant access to certain areas, the company said that the program has improved access in 24,700 neighborhoods across 150 cities, serving over 680,000 riders monthly.

The company’s head of public affairs said in August that starting this year, AI will be deployed in driver complaint channels, enhancing issue resolution efficiency.

Last December, Meituan similarly launched a pilot program in Quanzhou, eastern Fujian province, replacing late fines with a points system. By August, the company had expanded the program to 22 cities across China.

In September, drivers and company representatives from Ele.me, another Chinese major food delivery platform, signed the 2025 Algorithm and Labor Rules Agreement, stating that the platform will phase out late delivery penalties, while also including provisions for clearly defined time off to protect workers’ health.

Editor: Marianne Gunnarsson.

(Header image: A Meituan delivery worker in Shanghai, Aug. 25, 2025. Shen Qilai/Bloomberg via Getty Images/VCG)