Chinese Authorities Expose 'Ghost Delivery' Scheme
Chinese regulators have uncovered thousands of irregularities in online restaurant licensing. Many businesses operating without proper permits were able to get listed on food delivery platforms for a small fee.
Chinese market regulators have identified over 5,000 abnormal entries in the licensing data of online food service providers. The authorities conducted a verification of permits and licenses of online catering service providers, cross-referencing this information with food business permit data.
Regulators found an example of a restaurant named 'Jin Wan Shao Kao Ba' (今晚烧烤吧), which displayed a valid food business license. However, upon verification, it was discovered that the license was not recorded in the database. Local authorities investigating the listed address found only a row of garages without any signs of business activity, even though the platform indicated the restaurant was actively taking orders.
The restaurant owner admitted to registering the garage address for a food business selling fruits and vegetables. He intended to open a barbecue restaurant but lacked the necessary food business license. After being introduced to an individual claiming to be a platform business manager, the owner reportedly paid 500 yuan (approximately $70 USD) without providing any documentation, and the platform subsequently approved and listed the establishment.
The owner stated the permit was electronic and he never received a physical copy, yet the listing was active online. This 'ghost restaurant' operated for four months before being shut down by authorities. China's State Administration for Market Regulation has previously announced efforts to promote the use of electronic licenses in managing online food safety.
The investigation highlights systemic issues in the verification of online food vendors and underscores the government's commitment to tightening regulations in the rapidly growing food delivery sector.