Saturday, Sep 25, 2021
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Chinese ride-hailing giant Didi suspends UK expansion plans

Didi UK_IFM_Image
The plan to launch in the UK as well as Europe is now postponed by at least 12 months

China-based ride-hailing giant Didi has suspended its plan to launch in the UK as well as Europe as faces political and regulatory challenges in its home country, media reports said. The plan to launch in the UK and Europe has been postponed by at least 12 months.

The company was set to launch in the UK as it secured licences to operate in Manchester, Salford and Sheffield.

A Didi spokesperson told the media, “We continue to explore additional new markets, liaising with relevant stakeholders in each and being thoughtful about when to introduce our services. As soon as we have news on additional new markets, we look forward to sharing it.”

In July, China’s cyberspace regulator recently ordered the app stores to ban ride-hailing firm Didi Global after the application has severely violated relevant laws and regulations while collecting and abusing user data.

The regulator also told the ride-hailing company to take strict measures to fix the loopholes which are in accordance with the law and national standards which will ensure the data safety of users.

Earlier this year, the company revealed a loss of $1.6 billion for 2020 in its latest IPO filing. While filing a prospectus for its upcoming blockbuster US IPO, the company revealed that they have incurred heavy losses in recent years but now there is a solid chance of getting closer to profitability.

Last year, the company raised a funding of $62 billion, according to media reports. Didi’s largest shareholders include SoftBank’s Vision Fund, Uber Technologies, and Tencent Holdings.

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