China goes after 'ghost kitchens' to rein in cut-throat food delivery apps

They also recorded 67,000 "ghost shops" across seven major food delivery apps, which together with the order-transfer sites "formed an illegal supply chain through mutual collusion", according to Xinhua. Food delivery platforms were complicit in these arrangements, it added. "If we're too strict in our review, the merchants would go to other platforms," a staff member from one delivery app reportedly told officials.Online food delivery is a fiercely competitive industry in China. Last year, a price war among major delivery apps led to government warnings about a race to the bottom. Bearing the brunt of ever-speedier takeouts are delivery riders scrambling to meet tight deadlines for a pittance.In April, the State Administration for Market Regulation said that they have fined seven e-commerce platforms - including Taobao, JD.com, Meituan and Pinduoduo - a total of 3.6bn yuan ($530m; £400m), mostly over deliveries from "ghost kitchens".As the campaign against "ghost kitchens" continues, merchants are trying to assure consumers of food safety.According to a Xinhua report, more than 20 takeout stalls in the eastern city of Hangzhou have installed "transparent kitchens" with live broadcasting features, allowing consumers to view food preparation in real time.In nearby Anhui province, authorities announced last week that they have signed a food safety agreement with Meituan, Taobao and JD.com, which includes using AI models to monitor kitchens and rewarding delivery riders for whistleblowing on illegal restaurants.