Chinese ride-hailing giant Didi still awaits final ruling from Beijing, one year after it was put under cybersecurity review
- The Cyberspace Administration of China has remained silent on whether and when Didi’s dozens of apps can be restored to mainland app stores
- One year on, there has been no official update from Chinese authorities about the progress of Didi’s cybersecurity review, which remains shrouded in secrecy
The CAC, however, has remained silent on whether and when Didi’s dozens of apps can be restored to Chinese app stores, allowing the company to sign up new users. The ride-hailing firm has suffered huge business losses since last July.
Daily active users of Didi plummeted in April by about 70 per cent from the time the investigation began, according to a person familiar with third-party tracking data on Didi. The person declined to be identified because the information is not public.
Didi, which has not published recent business operations data, declined to comment.
Didi has said it will not seek to go public in another market until it completes business rectification measures.
China, according to report by The Wall Street Journal in early June, was concluding Didi’s cybersecurity review and was preparing to lift a ban on adding new users.
In the quarter ended December last year, Didi posted a 171 million yuan (US$25.51 million) loss and a 12.6 per cent year-on-year decline in revenue. Didi’s full-year net loss widened to 49.3 billion yuan, while its total revenue was up 22.6 per cent.
Beijing’s punishment of Didi has also thrown a spanner in the works of other Chinese tech firms planning to list in the US, as any company holding the data of more than a million mainland clients, is now subject to a cybersecurity review.
The tough enforcement measure has also dealt a blow to investor confidence in Chinese tech stocks, with Didi’s valuation plummeting. Its latest trading price on the OTC market is US$2.95, which is a fraction of its debut IPO price of US$14.