Latest News

Didi Cuts Back On UK Launch Amid Regulatory Issues

Didi Global, a Chinese ride-hailing giant, has reined in its plans to launch in the United Kingdom and continental Europe, citing the pressures of an ongoing Chinese regulatory crackdown, Reuters reported.

Didi has stopped hiring in Britain and will be delaying the launch plans by at least a year, according to the report. The company told staff working on the expansions that they face potential redundancy.

China has been cracking down on the company over cybersecurity concerns, citing fear of user data leaving the country, the report stated.

In June, the company listed its shares in New York, raising $4.4 billion in its initial public offering (IPO). That amounted to the biggest stock sale from a Chinese company since Alibaba listed in 2014, according to the report.

Earlier this month, Didi was in talks to potentially give control of its data to a firm that the country’s government owns. The company collects data about car locations, trips and indications of when workers in some cities end their shifts, along with what companies have the longest hours.

Read more: China’s Didi May Let Government-Owned Firm Manage Data

Didi has been talking with Westone Information Industry in order to pacify the regulators in this regard.

In July, Didi pushed back against reports that it was thinking about pulling back from going public at all. A published report stated the company might be considering that path as a way to appease the regulators currently looking into the company with extra scrutiny as well as investors who incurred losses when Didi’s shares dropped below the IPO price.

See more: Didi Says Reports Of NYSE Delisting Untrue

“The Company affirms that the above information is not true,” Didi said in its statement. “The Company is fully cooperating with the relevant government authorities in China in the cybersecurity review of the Company.”

But Didi has been in contact with bankers, regulators and investors as a way to make sure that the company is able to get out of the regulatory controversy it’s been in.

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News