China’s biggest ride-hailing firm Didi app has been pulled from app stores in China following a suspension order issued on July 4 by the Cyberspace Administration of China (CAC).

This development came just two days after the Chinese company made its debut on the New York Stock Exchange. According to New York Stock Exchange, Didi’s IPO was the bourse’s second-biggest of the year.

Bruce Burke, Chief Executive Officer, The Mandalay Group, tweeted:

Didi Chuxing Technology Co is a Chinese vehicle for hire company headquartered in Beijing with over 550 million users and tens of millions of drivers.

The company provides app-based transportation services, including taxi hailing, private car-hailing, social ride-sharing, and bike-sharing; on-demand delivery services.

China’s cyberspace regulator stated on Sunday that it had ordered app stores to stop providing the Didi app after discovering that the ride-sharing organization breached regulations governing the collection and use of personal data.

The regulator also asked Didi to correct the problems and to “earnestly safeguard the security of all users’ personal information.”

However, the Cyberspace Administration of China (CAC) didn’t reveal any details on what these issues were and how they breached local laws.

No New Didi App Users Allowed

Another announcement issued on Friday stated that new user sign-ups on Didi would be removed while the authorities carried out a cybersecurity review.

Current customers still would be able to access the app in the Chinese market and it is still available on smartphone app stores in other markets, including Singapore.

The Chinese ride-sharing giant declared that it would “fully cooperate” with the Chinese authority and organize a “comprehensive examination” of cybersecurity dangers and improve its cybersecurity and technology systems.

It’s very unusual for such a major app to be removed from the app stores. Didi app has 493 million annual active users as of the first quarter of 2021.

China’s official data showed the country had 365 million ride-hailing users as of December, which suggests Didi commands a substantial market share.

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