Didi delisting: A chronicle of the ride hailing giant's troubles since its New York IPO five months ago

national data security, reshuffle its senior management team, Information and Data Security (IDS) committee

Chinese ride-hailing giant Didi Chuxing said on Friday that it will start the process of delisting from the New York Stock Exchange and move forward with plans for a Hong Kong initial public offering (IPO).

Beijing-based Didi was founded in 2012 by Alibaba alumnus Cheng Wei, who owned 7 per cent of the shares and controlled 16.2 per cent of its voting power ahead of the New York listing.

In recent years, the company has emerged as a tech giant that dominates China’s ride-hailing market, receiving a market share boost after it took over Uber’s China operations in 2016.

Following is a timeline of Didi’s troubles since listing just over five months ago.

June 30, 2021: Didi launches New York listing

On the eve of the 100th anniversary of the Chinese Communist Party, Didi raised US$4.4 billion from its New York IPO, valuing the company at about US$70 billion.

Didi’s investors included SoftBank, Tencent Holdings, Post owner Alibaba Group Holding, Toyota Motor and Uber. The company had raised US$19.2 billion in multiple rounds of private-market fundraising since 2012.

Since the listing, Didi has kept an unusually low profile.

July 2: Cybersecurity review ordered

The Cyberspace Administration of China (CAC) initiated a probe into Didi to “prevent risks regarding national data security, to maintain national security, and protect the public interest,” according to a statement from the internet regulator.

CAC also ordered the company to stop registering new users on its main app.

In a statement issued the same day, Didi said it would “fully cooperate with the relevant government authority during the review”.

July 4: Didi’s primary app removed from app stores

The CAC banned Didi’s app from the country’s app stores indefinitely, saying it “seriously violated the country’s laws and regulations through the improper collection and usage of user information.

The regulator also ordered Didi to take “corrective measures” and to comply with regulations, a hint that its app could be restored in the future.

national data security, reshuffle its senior management team, Information and Data Security (IDS) committee

In July, regulators banned Didi’s app from the country’s app stores indefinitely. Photo: Shutterstock Images

July 9: More Didi-related apps removed

The CAC orders more than two dozen additional apps tied to Didi to be banned from China’s app stores, alleging they illegally collect user data. The apps included platforms catering to enterprise clients and freight movers, as well as apps tailored for Didi drivers, such as those used to manage dashcam footage.

The CAC also prohibited websites and platforms from providing links to Didi-related services. The 25 apps were ordered to “thoroughly rectify the existing problems in strict accordance with the requirements of the law and according to national standards”.

July 16: On-site investigation begins

A task force comprising seven Chinese ministries, including the CAC, the public security ministry and national security ministry, arrived at Didi’s offices to conduct the country’s first-ever cybersecurity review.

Other departments involved in the on-site inspection included the State Administration for Market Regulation (SAMR), the Ministry of Natural Resources, the Ministry of Transport, and the State Administration of Taxation.

July 29: Didi denies privatisation report

The Wall Street Journal reported that Didi was considering going private to placate authorities in China, and would compensate investors for losses incurred since the listing.

However, Didi denied the report in a post on its official Weibo account, saying that it was “actively cooperating with cybersecurity reviews”.

August 6: Didi denies market rumours of data transfer

Didi said on Weibo that market rumours that it transferred data rights to third parties, introduced new major shareholders, and was planning to delist, were false. ​​​​

This was in response to Reuters reports saying that the company was in talks with state-owned information security firm Westone to handle its data management, and that it planned to bring in new shareholders or delist its shares.

August 11: Didi management reshuffle report

The Post reported that Didi may have to reshuffle its senior management team as a result of the ongoing cybersecurity investigations, citing several sources familiar with the matter.

The investigations, conducted to ascertain who was responsible for Didi’s decision to “force” its way to a New York listing, contrary to the Chinese regulators’ verbal instructions, was a “deliberate act of deceit” and may result in its co-founder Jean Liu’s role being changed, said one of the sources.

In a statement issued the following day, Didi said, “Market speculation about management change is untrue and unsubstantiated.”

August 16: Didi announces internally it has set up security committee

Didi’s founder and chief executive Cheng Wei will head the Information and Data Security (IDS) committee, the Post reported. Chief technology officer Zhang Bo will be the executive deputy director, marking a significant departure from the previous practice that saw the committee taking a supporting role.

September 4: Didi denies reports of Beijing-led investment

Didi denied various media reports that the Beijing municipal government was leading a proposal to invest in the company, putting it under state control.

This came after Bloomberg News reported on September 3 that Shouqi Group – part of the influential Beijing Tourism Group – and other firms based in the nation’s capital would acquire a stake in Didi in the form of a “golden share”, with a board seat and veto power, under a preliminary proposal, citing people familiar with the matter.

September 20: Didi denied reports of co-founder Jean Liu leaving the company

Didi denied a Reuters report that president Jean Liu was on her way out, and threatened legal action to fight the “malicious” spreading of rumours.

Liu told close associates that she expected the government to take control of the ride-hailing giant and appoint new management, according to Reuters.

In another denial, Didi said the report was not accurate.

December 3: Didi to delist in New York

Although the Chinese government has not announced the result of Didi’s cybersecurity review, the company said on its official Weibo account on Friday that it would “start the work of delisting from the NYSE and initiate preparation for listing in Hong Kong with immediate effect”.

Liu Dian, associate researcher at the China Institute at Fudan University, said Didi’s latest move will solve the company’s problem “from the root”.

“[The move] will greatly lower the regulatory uncertainties it faces and is positive for the future development of the company,” said Liu. “This is a warning for other data-related tech platforms that they should strike a balance between making profits and taking social responsibility while offering public services.”

News Related


With Crash Bandicoot and Spyro heading to Microsoft, PlayStation should revive Jak and Daxter

Microsoft’s agreed acquisition of Activision Blizzard for close to $70 billion is a monumental deal that’s thrown up all manner of talking points about the way we play video games, ... Read more »

Ford Unveils The Bronco Raptor, Starting At $70,000

Ford Motor Company (NYSE:F) has announced a new Bronco SUV member, the Raptor, to be released later this year and starting at $70,000. The automotive giant is also aiming at ... Read more »

Best free DVD burner 2021: burn videos and data to disc

The best free DVD burners make it easy to burn videos and data to disc. Best free DVD burner 1. Ashampoo Burning Studio Free 2. WinX DVD Author 3. BurnAware ... Read more »

These Amplifiers Upgrade Your Home Wi-Fi

The business world has adapted to a new normal over the past couple of years as businesses have shifted to fully remote or hybrid models. If your company expects you ... Read more »

GT7 could be the PS5 game that forces your SSD expansion

Gran Turismo 7’s file size has been revealed, confirming that the upcoming racing game will eat your console’s storage space much like the cars it features would eat your wallet. ... Read more »

When will the Motorola Edge 30 be released in the UK? Here's everything you need to know

The handset is expected to arrive in the summer (iStock/The Independent) Motorola might not be the dominant force it once was – we still remember our Razr flip phone fondly ... Read more »

Bose SoundLink Flex review

One-minute review For a small, relatively affordable product, the portable Bluetooth speaker has an awful lot of boxes to tick before it can be deemed ‘competitive’. Happily, the Bose SoundLink ... Read more »

Why Implementing IT Service Management Is More Crucial Than Ever

After suffering from the catastrophic pandemic in 2020 and 2021, this is an important year for organizations operating in major industries worldwide. The Covid-19 situation resulted in a sharp drop in the demand ... Read more »

This Outlook email update will give your calendar a splash of color

Microsoft Outlook users will soon be able to liven up their work calendars with a bit of color thanks to a new update coming to the service. An upcoming upgrade ... Read more »

Best registry cleaners of 2022: Free and paid programs for Windows 10

Best registry cleaners 1. Restoro 2. CCleaner 3. Iolo System Mechanic 4. Wise Registry Cleaner 5. AVG TuneUp Read on for our detailed analysis of each program In the modern ... Read more »

Twelve new Xiaomi phones could be coming soon

Xiaomi tends to release a lot of handsets, and this year looks set to be no exception, as a leaker has found evidence of no fewer than twelve possibly on ... Read more »

Porsche Taycan gets Spotify support and more new features as major update rolls out

Technology and software are such a huge part of the modern vehicle ownership experience that it’s big news when an automaker makes a change. Porsche, a company far better known ... Read more »

Shop Macy's bras starting at just $9.60 during this huge one-day sale

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. If you’re looking for a few new wardrobe essentials, Macy’s has ... Read more »

Xbox Game Pass vs Xbox Game Pass Ultimate

For many, Xbox Game Pass has been a huge reason to buy an Xbox Series X or Xbox Series S console. The subscription service offers a vast library of games ... Read more »

The best free drawing software for 2022

Free drawing software has come a long way from its humble beginnings. While older drawing applications were severely limited, their modern counterparts are extremely powerful, offering lots of capabilities as ... Read more »

Lee Enterprises asks investors to help fight off hedge fund

OMAHA, Neb. — Newspaper publisher Lee Enterprises is asking its shareholders to help it fight off a hostile takeover offer from “vulture hedge fund” Alden Global Capital. The publisher of ... Read more »

This Slovakian startup claims we will own flying cars within 2 years

Most electric vertical take-off and landing (EVTOL) aircraft owe their design to futuristic flying robots and insects. But there’s a more humble kind of flying innovation — the flying aircar. ... Read more »

An 11-year-old with abdominal pain 3 months after getting COVID-19 still had the coronavirus in her gut

A slide from the girl’s biopsy reveals the coronavirus in her gut, seen here as brown shading.Dalia Arostegui et al./JPGN Reports/Insider Scientists found signs of the coronavirus in a girl's ... Read more »

Google Drive update will stop even the most gullible users falling victim to scams

Google is rolling out an update for its cloud storage service designed to shield even the least security-savvy users from malicious content. As explained in a blog post, Google Drive ... Read more »

Google is reportedly working on Chromecast with Google TV successor

Google launched its first Chromecast with Google TV in 2020. Two years later, Google is reportedly working on a new Chromecast with Google TV device, according to the documentation spotted ... Read more »

Partygate: Two Things That Everyone Is Pointing Out About Sue Gray's Report

Sue Gray is set to reveal the findings of her investigation into Partygate this week (Photo: Getty/PA) Sue Gray’s report into the parties which allegedly took place throughout the pandemic ... Read more »

12 things that will keep you warm outdoors this winter

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Over the past few weeks, many parts of the country have ... Read more »

Maida Vale: Woman stabbed to death before knifeman run over and killed as driver ‘tries to save her'

Police have launched an investigation into the deaths of a woman and the man who reportedly killed her in west London. Officers were called at 9am on Monday 24 January ... Read more »

Met apologises to woman for ‘sexist, derogatory' language in strip-search

Force pays compensation to Dr Konstancja Duff for language used after CCTV captures officers’ comments The Metropolitan police has apologised and paid compensation to an academic for “sexist, derogatory and ... Read more »

ITV Revamps Pre-9pm Schedule: Extends Evening News, Moves Soaps Back-to-Back

U.K. broadcaster ITV is making key changes to its pre-9pm schedule, including extending the evening news and putting its two biggest soaps, “Coronation Street” and “Emmerdale,” back to back. Presented ... Read more »

Reliance Jio 5G coverage update: Trials in top 1000 cities and more

Reuters file photo Reliance Jio has completed 5G network coverage planning for top 1,000 cities in the country and is augmenting its fibre capacity as well as running pilot across ... Read more »

Google sued by Texas, Washington, DC, here's why

Texas and the District of Columbia sued Alphabet Inc’s Google on Monday over what he called deceptive location tracking practices that invade users’ privacy. Two other state attorneys general plan ... Read more »

22GB RAM, 640GB ROM: Specs of Lenovo Legion Y90 gaming phone may have leaked online

The full specifications of the Legion Y90 gaming phone could have appeared online, as per a report by GizmoChina, based upon the claims of reliable tipster @Pandaisbald who reportedly posted ... Read more »

Why #AmazonInsultsNationalFlag trended on Twitter

Amazon on Monday faced the ire of a section of Indian social media users over merchandising some products, including apparel and food items, that feature images of the Indian flag, ... Read more »

Coach Outlet Insiders get early access to The Diary Collection and 50% off chic styles

— Recommendations are independently chosen by Reviewed’s editors. Purchases you make through our links may earn us a commission. Give your personal style a boost of energy this season. From ... Read more »

IHQ, ASTORY, Studio Dragon concerned about struggling Netflix

By Kim Jae-heun IHQ, ASTORY, Studio Dragon and other media production firms here are increasingly worried about the sudden plunge of Netflix’s stock price last Friday which fell by 21.79 ... Read more »

Porsche's new infotainment system now features full Spotify integration

Porsche is rolling out a new sixth-generation infotainment system to many of its core models as its cars become more connected. The system, known as Porsche Communication Management (PCM) has ... Read more »

Why Apple has been fined 5 million euros by Dutch antitrust regulator

Apple was fined 5 million euros ($5.65 million) by the Dutch antitrust regulator on Monday for failing to comply with an order to open its app store to allow dating ... Read more »

The Apple Watch 7 crashes to record-low price in rare deal at Amazon

While finding deals on the Apple Watch 7 isn’t a rare occurrence, Amazon typically only discounts the smartwatch with a Red, Blue, or Green sport band. If you’ve been looking ... Read more »

Dell's latest RTX 3070 gaming laptop deals include a $930 off Alienware M15

If you’re on the hunt for mid to high-end gaming laptop deals, then this RTX 3070 equipped Alienware m15 R4 for $1,371.99 (was $2,299) is a great buy right now. ... Read more »

The best running gadgets: top fitness tech to help you run better

Running is one of the oldest and most instinctive forms of exercise around – just put one foot in front of the other, rinse and repeat in quick succession. Still, ... Read more »

Lucasfilm is prioritizing legacy franchises like Star Wars over new projects

It looks like Lucasfilm will continue to bet on its most famous properties now and in the future – even if that means brand-new projects fall by the wayside. According ... Read more »

Wheel of Time author dismayed George R. R. Martin worked on Elden Ring

A popular fantasy novelist and author of the final books in the Wheel of Time series has expressed his dismay that George R. R. Martin was asked to contribute to ... Read more »

What is 5G Ultra Wideband? How your phone's internet may soon change

5G doesn’t just have an availability problem (with much of the world still lacking coverage) it also has a branding problem – at least in the US, where there are ... Read more »

Fears of the Fed's Policy Changes Send Huge Losses in the Cryptocurrency Market

The volatile cryptocurrency market is taking a hit as the Fed is expected to hike interest rates in an effort to combat inflation. “Central banks and governments have played a role ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic