U.S. Markets closed
  • S&P 500

    4,471.37
    +33.11 (+0.75%)
     
  • Dow 30

    35,294.76
    +382.20 (+1.09%)
     
  • Nasdaq

    14,897.34
    +73.91 (+0.50%)
     
  • Russell 2000

    2,265.65
    -8.52 (-0.37%)
     
  • Gold

    1,768.10
    -29.80 (-1.66%)
     
  • EUR/USD

    1.1606
    +0.0005 (+0.0464%)
     
  • 10-Yr Bond

    1.5760
    +0.0570 (+3.75%)
     
  • Vix

    16.30
    -0.56 (-3.32%)
     
  • GBP/USD

    1.3751
    +0.0074 (+0.5418%)
     
  • USD/JPY

    114.2000
    +0.5230 (+0.4601%)
     
  • BTC-USD

    60,867.00
    +598.75 (+0.99%)
     
  • CMC Crypto 200

    1,464.06
    +57.32 (+4.07%)
     
  • FTSE 100

    7,234.03
    +26.32 (+0.37%)
     
  • Nikkei 225

    29,068.63
    +517.70 (+1.81%)
     

Didi Trades Weaker as Report Says it Lost 30% Users Since China’s July Crackdown

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

By Dhirendra Tripathi

Investing.com – Didi Global ADRs (NYSE:DIDI) traded 1.6% lower in Thursday’s premarket after a report said the company has lost 30% of its daily users since July when the authorities in its home country began their crackdown on the company.

According to Aurora Mobile (NASDAQ:JG), a data solutions platform which researches the behavior of Chinese mobile users, Didi’s average daily user count fell to 10.9 million in August from 15.6 million in June.

A few days after the company listed on the NYSE on June 30, regulators in China banned the company from signing up new customers while they carried out a probe into its data handling practices. That exercise continues. Regulators also ordered app stores to remove 25 of Didi’s other apps.

The shares were issued to the public at $14 apiece and have rarely traded above that price. As per their Wednesday closing, they traded 69% below the issue price.

Based on its historical rate of sign-ups, the ban on opening new accounts is depriving Didi of about 4 million users every month.

A report in The Wall Street Journal in July said the regulators were miffed with the ride-hailing company as it had ignored their advice against going public pending their investigation.

Since the ban, authorities in China have further tightened rules governing the ride-hailing industry. The rules make it mandatory for companies to on-board only licensed drivers and stricter fines for non-compliance.

Related Articles

Didi Trades Weaker as Report Says it Lost 30% Users Since China’s July Crackdown

Ryanair lifts growth target, says no need for new Boeing order

Uniqlo owner Fast Retailing sees impact from Vietnam lockdowns