What was supposedly a week of celebration for DiDi following its listing on the New York Stock Exchange ended with a whimper with its app being blocked in China. The Cyberspace Administration of China (CAC) claimed on July 2 that the DiDi Chuxing app was collecting personal information that violated China laws and regulations.
App stores in China have been told to take down app until DiDi complies with the laws and regulations, and follows the standards set by the relevant authorities.
The move means that the app can no longer be downloaded in China. However, it does not affect existing users who can continue using the app.
In a statement, DiDi said that it would “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 Chinese ride-hailing giant noted that the app takedown may have an adverse impact on its revenue in China.
On its IPO debut last week (June 30), DiDi ended the day with a one percent gain at US$14.14 per share. With the US market closed today for Independence Day celebration, it would be interesting to note the impact of this latest development on the share price tomorrow.