Following claims of “serious violations of the law and regulations” in gathering and utilising confidential info, China’s internet authority has directed that the nation’s largest ride-hailing service, Didi Chuxing, be removed from mobile apps.
The assault comes shortly after the China’s Top ride-hailing platform – and probably the world’s second behind Uber – made its Wall Street debut on Wednesday, with the company’s strategic objectives reaching more than $69 billion by the end of the day.
Customers who had installed Didi’s application in China have still been able to use it on Monday. Each day, it provides about 20 million trips in China.
According to Chinese official media, Xinhua news agency, the current instruction further underscores “Chinese regulators’ resolve to crack down illegal activities on online platforms and enhance the protection of data security.”
The cancellation of a $37 billion IPO proposed by Alibaba subsidiary Ant Group late last year kicked off a massive regulatory crackdown on local internet giants focused on anti-competitive conduct and data security.
The rise of “data sovereignty” vs the US govt’s caution against Chinese enterprises should serve as a wake-up call for national security awareness to be prioritised in fundraising plans in areas that could represent a danger to China’s national security.
As per Didi, the number of global yearly registered users for year ended March 31 was 493 million.