Didi Deplatformed, Competitors Rush to Pick up the Slack
Didi has been removed from Chinese app-downloading platforms on Monday as Chinese regulators investigate the ride-hailing giant’s data privacy policy.
Fortunately, this won’t affect your daily rides, be it by car or bike-sharing – as long as you already have the app installed and have a registered account. Additionally, the app is still available on foreign platforms.
Those who are switching phones and find themselves unable to download the app may still have luck using the ride-hailing mini-app in WeChat and Alipay, provided they have previously registered a Didi account.
However, some netizens are reporting slower pick-up times from Didi, perhaps due to concerned drivers hopping over to other platforms, so competitors like Meituan have been rushing to offer customers major discounts and hefty hongbao in order to win them over.
The Cyberspace Administration of China cites illegal data collection as its primary concern, and has instructed Didi to “ensure the safety of personal information.” Didi has furthermore been prohibited from registering new users during the investigation period, putting a cap on its overseas expansion efforts. Existing users will be unaffected, luckily, as Didi’s near-monopoly on China’s ride-hailing market makes it an essential service for many city dwellers.
In a statement released on Monday, Didi said, "The company 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."
The timing of today’s regulatory action is certainly important. It comes on the heels of Didi’s red hot IPO in the United States this week, the biggest fundraising on record for a Chinese firm since Alibaba went public in 2014. Didi shares rose on market opening, only now to fall with the pending investigation.
The block on Didi comes as part of a broader crackdown on the tech industry in China. Job-search platform Boss Zhipin, as well as the “Didi for trucks” Huochebang and Yunmanman, are also on the firing line, facing similar freezes and injunctions after big American IPOs
At the same time, tech giants Alibaba, Meituan, and Tencent are under investigation for monopolistic, anti-competitive behavior.
There has been no timeline given for Didi’s reinstatement in the app stores, nor any specific violations leveled against the company under China’s Cybersecurity legislation.
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Image: Joey Knotts
