Didi’s relaunch of user sign-ups bodes well for its ride-hailing business, but regulatory scrutiny persists after tech crackdown

The Beijing-based company has retained its leading position in the ride-hailing market during an 18-month absence from China’s app stores

While Didi’s regulatory troubles are ‘reaching an end’, uncertainties linger as to how the government will enforce antitrust, algorithms and data rules

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Signage at the Didi Chuxing offices in Hangzhou, China. Photo: Bloomberg

Published: 6:30pm, 17 Jan 2023

Didi Chuxing’s resumption of new user registrations augurs well for the Chinese ride-hailing giant’s business outlook this year, even as it faces rival services that have gained a larger foothold during its 18-month hiatus, according to analysts.

The Beijing-based company said on Monday that it was immediately resuming new user sign-ups with the approval of the cybersecurity regulator, ending a ban that started in July 2021. Its main app will soon become available on China’s app stores again, according to a person familiar with the matter.

The progress “undoubtedly sets a good start for [Didi’s] development this year”, said Liu Ying, an analyst from market intelligence Analysys.

The headquarters of Didi Chuxing in Beijing. Photo: AFP

She said that the company’s main business has been stunted by tightened regulations, as well as the Covid-19 pandemic, which has significantly weakened ride-hailing demand.

Between July 2021 – when China’s Cyber Security Review Office began an investigation into Didi, just two days after the company went public in New York – and December 2022, monthly orders received by Didi plunged almost by half, according to the Ministry of Transport.

Meanwhile, some of its strongest rivals such as Meituan – the food delivery giant that expanded into Didi’s turf in 2017 – and T3 – a joint venture by three state-owned carmakers – saw their orders surge 63 and 103 per cent, respectively, during the same period.

Big Tech companies including telecoms equipment maker Huawei Technologies Co, Tencent Holdings’ WeChat, as well as TikTok and Douyin owner ByteDance, have also been investing heavily in the field during Didi’s absence in app stores, either launching their own service or making their existing services more prominent on platforms.

A driver opening the Didi app on his smartphone in Beijing. . Photo: AFP

Didi’s relaunch of user sign-ups bodes well for its ride-hailing business, but regulatory scrutiny persists after tech crackdown

The Beijing-based company has retained its leading position in the ride-hailing market during an 18-month absence from China’s app stores While Didi’s regulatory troubles are ‘reaching an end’, uncertainties linger as to how the government will enforce antitrust, algorithms and data rules

The Beijing-based company has retained its leading position in the ride-hailing market during an 18-month absence from China’s app stores

While Didi’s regulatory troubles are ‘reaching an end’, uncertainties linger as to how the government will enforce antitrust, algorithms and data rules