After the IPO, Beijing suppressed Didi and lost 30% of its daily users

[ad_1]

Didi Chuxing updates

Didi Chuxing, China’s leading ride-hailing app, has dropped 30% in daily user numbers since its IPO in New York in June sparked strong opposition from Beijing.

In the days after Didi’s initial public offering, Chinese regulators barred the company from registering new customers. Data security investigation This is still going on.Regulators also Order the app store to be deleted Didi’s other 25 apps, including those for registering new drivers.

Since the IPO, Didi’s share price has fallen by more than 40%, and its competitors have begun to attract customers through promotional activities.

Aurora Mobile’s data, which studies the user behavior of China Mobile, shows that the average daily number of Didi users in August fell from 15.6 million in June to 10.9 million. Its main competitor either increased the number of users or saw a small percentage drop in the number of users.

Based on its historical registration rate, the prohibition of opening customer accounts has cost Didi about 4 million users every month.

The company has not reported its second-quarter earnings to its US shareholders, nor has it indicated when it will do so. Most companies reported it a few weeks ago.

Didi did not respond to multiple requests for comment from its daily users or its financial reporting plans, and as a foreign issuer, it has no obligation to report quarterly financial reports.

In addition, data from the Chinese transportation department shows that the number of online ride-hailing companies that completed more than 300,000 rides per month in July increased to 17 for the first time.

“After I started using Amap, I found it more convenient and more choices,” said a 26-year-old man surnamed Jiang in Beijing. After the government took action and the waiting time for Didi Motors increased, he turned to Alibaba’s Amap, which brought together ride-hailing service providers.

The fiercely competitive Chinese car-hailing group launched a series of promotions and discounts Lure Didi users And the driver.

“Meituan is issuing huge cash rewards for newly registered drivers,” said a driver in Beijing who left Didi to the Meituan platform in mid-July to seize this opportunity.

“We all know that this may be a huge change… This is indeed an opportunity,” Gong Xin, head of competitor Cao Cao Mobile, told local media.Cao Cao from a group this month State-owned funds To accelerate its expansion.

The rules announced by the transportation department last week may also hinder Didi’s long-term operations. The law prohibits ride-hailing services from allowing unlicensed drivers or cars to board, and requires suppliers to “speed up” the process of clearing existing drivers and vehicle pools for violations.

For many years, the authorities have turned a blind eye to this issue, and Didi and its subsidiary Xiaozhu Express have been the beneficiaries. According to government data, every month this year, the percentage of ride-hailing vehicles that are fully compliant is ranked bottom among Chinese online car-hailing suppliers.

Data from the transportation department showed that only 41% of Didi Chuxing passengers were fully compliant in July, compared with 24% of Xiaozhu Express.

However, some analysts believe that Didi may be able to tide over the difficulties.

“Didi is still the largest player in the market, and if Didi takes action to address their concerns, the consumer switch may be temporary,” said Guo Shan, an analyst at Plenum, a Beijing-based consulting firm.

“Regulations may have a greater impact. If Beijing requires Didi to split or abandon exclusive agreements with drivers, it will be easier for competitors to eat into its market share,” she said.

The cybersecurity investigation guidelines indicate that the process should be completed within three months, but Didi has little to say about its progress.

Supplementary report by Nian Liu and Emma Zhou in Beijing

#techAsia Weekly Newsletter

An important guide to the billions of dollars you have created and lost in the Asia Tech world.A selection of exclusive news, clear analysis, intelligent data and the latest technology boom from FT and Nikkei

Sign up here with one click

[ad_2]

Source link