As of the evening of July 4, Didi Chuxing, the Chinese online ride-hailing giant, has been accused of the serious illegal collection of personal information and has been ordered to be removed from app stores and has stopped registering new users.
Didi responded that it would rectify the situation according to the law to ensure the security of its users’ information. Users who have downloaded the Didi application can use it as per usual, while passengers’ travel plans and drivers’ orders will not be affected.
According to Tencent Finance, the announcement from the Chinese government on July 2 did not explain the details or the process of the security review. However, since the announcement involved the national security law, it caused a stir within the market. There were rumors that Didi leaked the road and user information to the United States in order to go public.
The rumors were quickly denied by the company. Li Min, vice president of Didi, responded: “Like many Chinese companies listed overseas, the information of domestic users of Didi is stored on domestic servers, and it is impossible to hand over the information to the United States. In addition, although the relevant malicious rumors have been deleted, we will resolutely sue for rights protection.”
On June 30, Didi Chuxing debuted on the NASDAQ in the United States at a price of US $16.65 a share, which was about 20% higher than the previously scheduled issue price of US $14. The company’s ticker symbol is DIDI.
According to the highest valuation of the day, Didi’s market value peaked at US $80 billion. PitchBook reported that Didi’s latest valuation was $62 billion in the last round of financing.
However, after its initial IPO, Didi’s share price plunged sharply. As of the close of trading on June 30, Didi’s share price hung around US $14. As of July 2,Didi’s shares traded at US $15.525 per share.