Popular Chinese online food delivery service, Ele.me, has been fined RMB 120,000 (around $19,000) by the Shanghai Food and Drug Administration for violating China’s food safety laws.
The fine comes after the CCTV consumer rights television show, “3.15”, discovered that a number of restaurants registered with the delivery service were unlicensed and storing food in unsanitary conditions. Many restaurants relied on rusty utensils and equipment, and the kitchens were full of dirt and oil stains.
The show revealed that a small group of men were responsible for supplying food from five different restaurants registered on Ele.me, all using the same cramped ten square meter kitchen space. Kitchen workers were filmed ripping bags of food open with their teeth, or using their fingers to taste the food.
Five of the restaurants were closed by Shanghai authorities for failing to have the necessary certifications.
Ele.me’s CEO, Zhang Xuhao, apologized for the violations. “We must admit that Ele.me has not fulfilled its obligations in overseeing food safety. The management and I accept full responsibility in this matter. We hereby offer an apology to all our clients that have supported us, as well as apologizing to all the businesses that may have been affected by this.”
Last year, Alibaba reportedly invested $1.25 billion in Ele.me, thereby becoming the company’s largest shareholder. At the same time, Alibaba has faced quality assurance issues of its own, following allegations that 40 percent of its online goods are counterfeit.