After app sale ban: DiDi Global shares in double digits: DiDi expects sales to drop in China | Message

Didi said Monday, the board assumes that deactivating the app could reduce sales in China. Meanwhile, analysts are not afraid of a noticeable drop in profits, given that the current user base in China is large. Removing the application does not affect existing users.

DiDi arranges an average of more than 20 million rides in China every day. In addition to China, the travel agent operates in 15 other countries.

The China Cyberspace Authority (CAC) on Sunday banned smartphone app stores from continuing to offer the DiDi app for download. DiDi illegally collected personal user data, and was said to justify it. The authority has already launched a national security investigation into the company and said on Friday that DiDi was not allowed to acquire new customers in China.

The company confirmed on Sunday that it is following the instructions. DiDi, which collects huge amounts of navigation data for the purposes of technology research and traffic analysis, said it would endeavor to fix any issues and protect users’ privacy and data security. Previous users were able to access the services unchanged on Sunday.

DiDi was listed on the New York Stock Exchange last week and grossed $4.4 billion.

On Tuesday, DiDi shares temporarily lost 21.41 percent to $12.21 in US trading.

Beijing / Hong Kong (Reuters)

More news about DiDi Global Inc (A) (sponsor. ADRs)

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