Chinese officials remove DiDi from app stores after filing IPO
The Cyberspace Administration of China on Sunday banned ride-hail giant DiDi from app stores, Bloomberg reports.
Why it matters: DiDi, known as the Uber of China, went public this past Thursday on the New York Stock Exchange at a $73 billion valuation.
- Approximately 98.4% of its revenue comes the company's from Chinese operations, making it incredibly dependent on the national market. Its removal from app stores could potentially heavily affect the company's value.
What they're saying: DiDi "said on its official social media account that it had already halted new user registrations as of July 3 and was now working to rectify its app in accordance with regulatory requirements," Bloomberg writes.
State of play: The announcement comes two days after regulators announced they were starting a cybersecurity review after the company announced intentions to IPO. DiDi was not allowed to register new users while the investigation was underway, Reuters notes.
- DiDi had told Reuters it would conduct an examination of cybersecurity risks and fully cooperate with the Chinese government.
The big picture: The Chinese government is toughening up against the country's largest tech companies as they become more influential.
- In December, regulators said they were investigating the Alibaba Group on suspicion of monopoly. The group amassed millions of users and had been "gaining influence over almost every aspect of daily life in China," Bloomberg wrote at the time.
- Alibaba co-founder Jack Ma went missing for three months after meeting with regulators for giving a speech in which he opposed the Chinese government. Once he reappeared, analysts said he kept a low profile as a result of his controversial statements, per the BBC.
Between the lines: DiDi can continue operating for those people who already have the app installed on their devices.