China allows Didi apps back online in latest sign of regulatory thaw

China allows Didi apps back online in latest sign of regulatory thaw

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That move sparked a regulatory crisis for Didi, with 25 of its mobile apps ordered to be removed from the App Store, registration of new users suspended, and fined over data-security breaches.

Didi was also forced to end its 11-month-long run as a New York Stock Exchange-traded company in June last year, turning it from the poster child of China’s internet boom into one of the biggest casualties of Beijing’s regulatory crackdown. was changed to one.

Two sources have said that the firm had previously hoped that the US delisting and a hefty fine would head off its regulatory woes and had hoped to relaunch the app in September to ensure they were compliant.

However, the return of Didi’s banned apps was delayed amid two congressional and central leadership reshuffles in November of China’s ruling Communist Party and the outbreak of COVID-19 in several cities across the country, after Beijing imposed last year’s ban. Eventually the strict virus restrictions were lifted.

The delay in the return of the apps had cast a shadow over Didi’s business plans.

Reuters reported in June that Didi was in advanced talks with state-backed Sinomac Automobile600335.SS to buy a third of its electric-vehicle unit to help cushion the impact of the pandemic on its core ride-hailing business. Was.

Two of the sources said the deal is primarily subject to the app’s relaunch being subject to an official announcement.

Didi has also been hit hard by the regulatory crisis, which chipped away at its dominance and allowed rival ride-hailing services operated by automakers Geely and SAIC Motor to gain market share nationwide.

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