The Cyberspace Administration of China (CAC) notified today app stores to take down the DiDi Chuxing mobility app in China. this take down follow the statement by CAC released also on 4th July 2021 saying that it was reported and confirmed that the DiDi Chuxing app had the problem of collecting personal information in violation of relevant PRC laws and regulations.
The take down comes when the company had just launched their initial public offering (IPO) that started off on 30th June 2021 at a price of $14 each class A ordinary share. The total offering size was expected at $4.4Bn. Didi shares traded in Nasdaq had reached the 14.32 just three days ago after the IPO and some analysts valued the company at 70Bn.
DiDi Global Inc. expects that the app takedown may have an adverse impact on its revenue in China, their domestic market.
China, one market among 16 countries
Apart from the suspension of new user registration in China, that was previously announced on July 2, 2021, and the app takedown in China as announced today, DiDi maintains normal operations globally. Leaving aside the PRC, to date Didi Global Inc. is active in the following markets: Argentina, Australia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Japan, Mexico, New Zealand, Panama, Peru, Russia and recently incorporated this same year, South Africa.
DiDi Global Inc. offers a wide range of app-based services across Asia Pacific, Latin America and Africa, as well as in Central Asia and Russia, including ride hailing, taxi hailing, chauffeur, hitch and other forms of shared mobility as well as auto solutions, food delivery, intra-city freight and financial services. Known as the Chinese UBER, in fact this chinese company acquired UBER operations in the PRC some years ago, in 2016.
In 2021 the company started off their way on the AV (autonomous vehicle) field with three announcements to date: A R&D center in Guangzhou, a collaboration with Volvo Cars in this matter and a aprtnership with CAG to accelerate development and mass production of fully autonomous electric vehicles in China.
No more downloads, but still operative in the PRC
Pursuant to the PRC’s Cybersecurity Law, the CAC notified app stores to take down the DiDi Chuxing app in China, and required the Company to strictly comply with relevant laws and regulations, follow the relevant standards set by the PRC government authorities, and rectify the problem to ensure the security of users’ personal information.
Once the DiDi Chuxing app is taken down from app stores in China, the app can no longer be downloaded in this Asian country, although existing users who had previously downloaded and installed the app on their phones prior to the takedown may continue using it.
The Company underscores that they will strive to rectify any problems, improve its risk prevention awareness and technological capabilities, protect users’ privacy and data security, and continue to provide secure and convenient services to its users.