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Didi suspends UK launch plans amid China crackdown on data security
Chinese ride-hailing giant Didi Global has suspended its plans to launch in Britain and mainland Europe, following a regulatory backlash in China over data privacy.
Didi has been building up to a planned launch later this year, having secured operator’s licenses in a number of UK cities including Salford and Sheffield. But now the planned launch has been delayed for at least a year – and industry insiders believe it may now not happen at all.
In February 2021, Didi announced plans to launch in European markets including the UK, France and Germany. But now, staff working on the planned launches have been told that they face possible redundancy, and Didi has stopped hiring in Britain.
In a statement, a Didi spokesman did not mention the UK, merely stating: “We continue to explore additional new markets, liaising with relevant stakeholders in each and being thoughtful about when to introduce our services.”
Beijing-based Didi’s problems are in its home market, where it has been caught in a domestic regulatory crackdown on the massive Chinese internet sector. Didi is under a cyber-security review as China revamps its policy towards privacy and data security to ensure secure storage of user data.
Didi listed its shares in New York in June after raising £3.2 billion in an initial public offering with a view to international expansion, but the Chinee regulatory crackdown has wiped a fifth off its value. Didi is the dominant ride-hailing operator in China. Indeed, it is so powerful that Uber withdrew from the market in 2016 in exchange for a stake in Didi.
Didi recently launched in South Africa, Ecuador and Kazakhstan, and has established operations in Japan, Australia, New Zealand, Brazil and Colombia. But it now looks like Europe is no longer on the schedule.