Technology
Didi Crackdown Shakes Foundations of Chinese Ride-Share Industry
Riders, drivers, and competitors are adjusting to a disruption at a company that holds 90% of the market.
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China’s sudden removal of Didi Global Inc.’s ride-hailing services from app stores in the country has spooked riders and drivers while energizing rivals who see a rare opportunity to chip away at a leader holding 90% of the market.
Four days after Didi’s initial public offering in the U.S. on June 30—the second-largest ever for a Chinese company—China’s cybersecurity regulator told app stores to remove Didi, saying an investigation had uncovered problems with the way it collects and uses personal information. The move was the latest escalation in China’s effort to rein in powerful tech companies, which has already generated significant uncertainty about how freely they’ll be able to operate.