Didi’s latest fines for unlicensed cars, drivers highlight compliance uncertainty ahead of Hong Kong listing
- The fines, which totalled US$28,338, were issued between Monday and Wednesday, according to the official website of the Zhejiang provincial government
- Didi did not give a reason for delisting from New York, but the move follows an investigation into the firm by the Cyberspace Administration of China
With the firm aiming for a Hong Kong listing, where stricter compliance requirements apply, the development adds uncertainty to its plan to respond to the Chinese government’s calls for better data protection and driver security.
Didi was fined by three city transport authorities in Jinhua, Ningbo and Linhai, all in the eastern Zhejiang province, for allocating rides to unlicensed cars and drivers on both its main Didi Chuxing app and budget ride-hailing app Huaxiaozhu.
The fines, which totalled 180,000 yuan (US$28,338), were issued between Monday and Wednesday, according to the official website of the Zhejiang provincial government.
Didi did not immediately respond to a request for comment.
Didi announced last week that it would “start the work of delisting from NYSE”, and convert its American depositary shares (ADSs) on that bourse “into freely tradeable shares” on another exchange, after shareholders vote for the plan, as well as pursue a listing of its class A ordinary shares on the main board of the Hong Kong stock exchange.