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Why Did China Order To Takedown 25 Apps From Ride Service Didi?

ByMike Paul

Jul 28, 2021

Why Did China Order To Takedown 25 Apps From Ride Service Didi?

What is Didi?

DiDi Global is an app-based vehicle sharing Service Company. The company raised $ 4.4 billion by selling American Depositary Receipts (ADRs) for 316.8 million people. The market value has reached $ 68 billion, the biggest IPO of a Chinese firm registered on the USA exchange since Alibaba in 2014. DiDi recorded sales of $ 21.6 billion in 2020. 

The main business is to acquire some of its Chinese and overseas competition over the years in application-based ride-hailing services. The group went public when many of China’s top high-tech companies were tightening scrutiny by Chinese regulators as part of a more extensive antitrust crackdown, requiring many companies to face fines and restructuring.

Its place in China and other nations, particularly developing markets with a starting edge, presents a solid foothold for expanding its position as the highest player in the ride-hailing world. 

What happened to Didi?

Chinese regulators have ordered to remove twenty-five apps from Didi Global, the most populous ride-hailing service, from the app store because the app seriously violates its privacy policy. China orders takedown of 25 apps from ride service Didi. After being listed on the U.S. stock market last week, China’s National Internet Information Office deleted Didi’s main application last Sunday, pending a cybersecurity survey. The 25 added apps cover Didi driver apps and Didi Enterprise. 

A Didi spokesperson did not quickly reply to a request for remark. Earlier this week, the authorities announced that they would strengthen the supervision of overseas listed companies. The new measures will improve data security supervision, cross-border data flow, and sensitive data management.

What is the topic for rebuke?

The move came after Chinese officials announced this week that they would step up surveillance of foreign-listed companies. Based on modern measures, regulation of data flow between nations and management of sensitive data gets improved. Didi is the most advanced company under investigation by the Chinese government. Internet regulators research revealed a severe breach in the way Didi collects and uses personal information. The report said the organization was instructed to correct the problem but did not give details. Internet regulators have also said that Didi is barring new customers from receiving until the investigation gets concluded.

What did Didi do?

Didi was established in 2012 as a taxi calling app and has extended with other boarding calling options, including personal cars and buses. It also says it is spending on electric vehicles, artificial intelligence, and other technologies. 

It has raised $ 4 billion from investors in a public offering in New York. The Communist Party of Authority began crushing control of China’s rapidly changing Internet industry and launched anti-monopoly and other inquiries. Earlier this year, authorities imposed a cut $ 2.8 billion fine on Alibaba for antitrust crimes and originated an investigation into Meituan, a dietary platform distrusted of monopoly.

On Saturday, Chinese market regulators blocked the merger of Tencent-supported video game live streaming programs Huya and Douyu based on antitrust investigations.

Mike Paul

Mike was one of the founding members of DMR, he was a pivotal figure in the early stages of DMR. Mike has since left the team to pursue his career in software development.

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