Why China Has Banned Taxi App Didi Days After IPO Filing


The rest of the world, which to the most part does not include China, uses American apps; Google, Twitter Facebook, Uber, and their associated services, and among many other super apps by Western tech corporations are absent in China. This is not new information, and it does not mean that the Chinese are locked out from the benefits of these services because the world’s most populous country replicates or clones such tools for its natives.

Case in point here is Uber, which, as said, is not available in China. However, there is Didi, which offers the same services as the American super-app, and is huge by all standards, including it being listed in the U.S. just the other day.

Didi has since been ordered off app stores by Beijing following issues related to the collection and use of customer data.

Here is the statement that was issued by the Nation Internet Information Office in China:

According to the report, after testing and verification, “drip travel” app there are serious violations of the law and the collection and use of personal information. The State Internet Information Office, in accordance with the relevant provisions of the Cyber Security Law of the People’s Republic of China, notified the App Store to take off the “drip travel” app, requiring drip travel technology Co., Ltd. to strictly follow the legal requirements, refer to the relevant national standards, seriously rectify the existing problems, and effectively protect the security of the personal information of the vast number of users.

The statement does not reveal the specifics of the problems linked to banning the app. Chinese internet regulators have only stated that they received information about the security issues, tested the information, and eventually verified it.

Just the other day, Chinese internet regulators announced that new sign-ups for Didi would be suspended to examine a security concern. You should note that Didi had been listed two days earlier, and this development led to a fall in share price.

The Sunday blow (Didi being called off stores) could be connected to the review that halted the addition of new customers in Didi, although such a statement has not been revealed.

The moves can be extrapolated to indicate the manner the Chinese government regulates its internet space with an iron fist, and in cases where Americans are part of the process.

Launched in 2016, Didi purchased Uber operation in China and has 377 million active users in China alone. It also runs operations in other countries such as Brazil, Australia, and South Africa, and 13 others.