Didi’s relaunch of user sign-ups bodes well for its ride-hailing business, but regulatory scrutiny persists after tech crackdown

The Beijing-based company has retained its leading position in the ride-hailing market during an 18-month absence from China’s app stores

While Didi’s regulatory troubles are ‘reaching an end’, uncertainties linger as to how the government will enforce antitrust, algorithms and data rules

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Signage at the Didi Chuxing offices in Hangzhou, China. Photo: Bloomberg

Published: 6:30pm, 17 Jan 2023

Didi Chuxing’s resumption of new user registrations augurs well for the Chinese ride-hailing giant’s business outlook this year, even as it faces rival services that have gained a larger foothold during its 18-month hiatus, according to analysts.

The Beijing-based company said on Monday that it was immediately resuming new user sign-ups with the approval of the cybersecurity regulator, ending a ban that started in July 2021. Its main app will soon become available on China’s app stores again, according to a person familiar with the matter.

The progress “undoubtedly sets a good start for [Didi’s] development this year”, said Liu Ying, an analyst from market intelligence Analysys.

The headquarters of Didi Chuxing in Beijing. Photo: AFP

She said that the company’s main business has been stunted by tightened regulations, as well as the Covid-19 pandemic, which has significantly weakened ride-hailing demand.

Between July 2021 – when China’s Cyber Security Review Office began an investigation into Didi, just two days after the company went public in New York – and December 2022, monthly orders received by Didi plunged almost by half, according to the Ministry of Transport.