Didi Chuxing

DiDi Chuxing, also known as DiDi, is a mobile transportation company founded in 2012 and headquartered in Beijing. It has grown to become one of the world's largest ride-hailing companies, serving millions of users across various continents.

In June 2012, Didi Dache was founded, marking the beginning of Didi's journey in the transportation industry.

Jean Qing Liu joined DiDi in 2014 and has been instrumental in the company's rapid growth.

In 2015, DiDi and Kuaidi Dache engaged in a price war, leading to significant financial losses for both companies. Following the merger, the newly-formed combined company became one of the largest ride-sharing apps, valued at approximately $6 billion.

On Valentine’s Day in 2015, Didi Dache and Kuaidi Dache, its major domestic rival, announced a plan to merge and rebranded as Didi Chuxing. The merger raised concerns about potential violation of China’s anti-monopoly law.

In June 2015, Didi Chuxing was fined $1.2 billion by the Cyberspace Administration of China for unlawfully collecting vast troves of user data, posing a serious threat to national security.

On July 28, 2016, China implemented a national level policy to legalize ride-hailing, making it the first nation to do so nationwide.

Three days after the new policy was implemented, Didi Chuxing acquired Uber China, including its brand, business, and data, and took over its operations on the mainland.

A female user of Didi Hitch, a carpooling service, was killed by her driver. The app allowed drivers to view detailed information about the passenger, including personal details and reviews, leading to safety concerns.

Didi took down its Hitch service for 'rectification' following the safety concerns and the incident of a user being killed by a driver.

Didi suspended its night-time road sharing service, possibly in response to safety issues and public concerns.

Didi resumed part of its night-time Hitch services, allowing drivers to pick up same-sex passengers only, possibly as a safety measure.

Another female user of Didi Hitch was murdered by her driver, leading to the suspension of the Hitch service again. The company admitted fault and acknowledged operational loopholes.

In December 2019, Didi Chuxing piloted mandatory audio recording as a safety feature during long rides on its Hitch service. This move was accompanied by a tragic incident where the owner of a car fleet company attempted suicide and blamed Didi for putting his company out of business.

In late 2020, Didi began discussing IPO plans with its bankers at Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. The company weighed whether to go public in Hong Kong or the U.S., and was seeking a valuation of as much as $100 billion.

In May 2020, DiDi raised $500 million from SoftBank and For Good Ventures in a venture round of financing.

Didi was ordered to pay a penalty of RMB 500,000 for insufficiently disclosing three acquisitions and investments for antitrust reviews, including a takeover of a Shenzhen-based car rental firm.

On June 10, 2021, Didi filed for a share listing, coinciding with reports of China's market regulator opening an antitrust probe into the company. Didi had dismissed these reports as 'unsubstantiated speculation.'

On June 16, 2021, SAMR initiated an investigation into Didi on suspicion of anti-competitive practices, including the manipulation of ride prices and squeezing out smaller rivals. This investigation followed Didi's acknowledgment of completing a self-inspection to correct monopolistic practices as required by regulators.

Didi, a Chinese tech company, made its initial public offering (IPO) in the United States on June 30, 2021.

China's year-long investigation into Didi concluded with authorities imposing a $1.2 billion fine on the ride-hailing giant for alleged violations in cybersecurity, data security, and personal information protection.

On July 4, 2021, the Cyberspace Administration of China (CAC) ordered the takedown of Didi's apps from app stores due to serious problems regarding the illegal and irregular use of personal information collection. This action was based on the Cyber Security Law, and Didi was asked to rectify the existing problems and protect the security of users' personal information.

Didi Chuxing has maintained its dominance in the Chinese ride-hailing market with no serious challenger since acquiring Uber. Legal and regulatory support, along with significant investment, have contributed to its continued success.

Chinese officials urged Didi to postpone its share sale due to concerns that IPO documents required by U.S. regulators could contain sensitive information. The Chinese government wanted to ensure that the documents presented to U.S. regulators did not include any sensitive data. This request was related to the issue of audit working papers and the demand for U.S.-listed Chinese companies to hand over audit documents for U.S. regulators' inspection.

Chinese authorities, including the Cyberspace Administration of China and other relevant ministries, initiate an investigation into Didi's data security, making it the first major internet company to undergo a cybersecurity review.

Chinese regulators are considering imposing significant penalties on Didi, including fines, operational suspensions, or the introduction of a state-owned investor. The possibility of forced delisting or withdrawal of Didi's U.S. shares is also being discussed.

Didi's shares experience a significant drop to almost $8, starting from an initial trading price of $14.40 and reaching a peak of $18.01.

The city of Xi'an issues an order for Didi to ban unlicensed vehicles, posing a threat to over half of Didi's fleet in the city. The order follows an investigation revealing that a significant portion of vehicles on Didi's platform lacked proper licenses and failed to meet regulatory requirements.

Alibaba's chairman and Tencent's president counsel Didi to defer its New York listing. Didi also completes a technical upgrade of its smartphone apps to comply with Chinese regulators' demands on data collection, mapping, and user privacy.

Chinese regulators order Didi to rectify instances of what the government considers misconduct, including recruiting unlicensed drivers and the need to strengthen user data protections.

Didi’s co-founder and President Jean Liu has expressed her intention to step down, anticipating the government to take control of Didi and appoint new management. This indicates a significant change in the leadership of the company.

Didi is gearing up to relaunch its ride-hailing and other apps in China by the end of the year, in anticipation of the completion of Beijing’s cybersecurity investigation. The company has also allocated a substantial amount for a potential fine, reflecting its efforts to address regulatory concerns.

Chinese regulators have requested Didi’s top executives to devise a plan to delist from U.S. bourses due to concerns about the leakage of sensitive data. This indicates the escalating regulatory pressure on Didi and its operations.

Didi has confirmed its decision to delist from the New York stock exchange and pursue a listing in Hong Kong. This move reflects the company's strategic response to regulatory challenges and its aim to strengthen its position in the market.

Reuters announced that the Chinese government would permit Didi Global's ride-hailing and other apps back on domestic app stores, with the possibility of the return before Chinese New Year. The Wall Street Journal later confirmed the news and reported significant improvements in the percentage of orders carried out by vehicles and drivers with required government permits.

Didi's plan to delist from the New York stock exchange and pursue a new listing in Hong Kong was halted by regulators due to concerns about the leaking of sensitive data to US authorities.

In an extraordinary general meeting (EGM), 96.26% of Didi’s shareholders voted in favor of delisting Didi from the New York Stock Exchange.

On June 11, 2022, Didi delisted from the New York Stock Exchange.

Chinese authorities are preparing to impose a fine of more than 8 billion yuan on Didi, accounting for about 4.7% of Didi’s total revenue last year.

On July 21, 2022, Didi was fined $1.2 billion for regulatory violations. This event signifies a significant financial penalty imposed on the company.

New rules effective from 2023 require auditors of U.S.-listed Chinese companies to be based in China, and the U.S. would not have access to the audit papers. This change has implications for the supply of audit documents when doing a U.S. listing.