In a significant shift toward improved labor conditions, food delivery platforms Eleme and Meituan are set to abolish financial penalties for delayed deliveries, moving from a punitive model to a positive incentive-based management approach, Jiemian News reported on Tuesday.

Eleme is testing a revised service-points mechanism that replaces direct monetary penalties with point deductions to better incentivize performance and reward high-quality service. Cities participating in the trial include Nantong and Changzhou in Jiangsu province, Jieyang in Guangdong province, and Jingdezhen in Jiangxi province. There are plans to expand the initiative to more cities within October.

Meituan is on a similar track. Having tested a "non-penalty mechanism" in over 30 cities, the company has publicly pledged to completely eliminate late-delivery fines by the end of 2025.

ALSO READ: China urges food delivery platforms to compete in fair, orderly manner

Both companies are also upgrading safety and wellness measures, such as introducing AI voice reminders and optimizing mandatory break systems, to create a fairer and safer working environment for their food delivery drivers.