- DiDi Global Inc (NYSE:DIDI) lost 30% of its daily users since its June U.S. initial public offering following China’s tech crackdown, Financial Times reports.
- Didi’s average daily user count for August fell to 10.9 million from 15.6 million in June. However, the number of ride-hailing companies that completed over 300,000 monthly rides grew to 17 for the first time in July, as per China’s transport department.
- China had banned DiDi from signing up new customers while they investigated its data security. The ban is costing DiDi 4 million users per month.
- The regulators also ordered app stores to remove 25 of Didi’s other apps, including those that register new drivers. The regulations banned ride-hailers from onboarding drivers or cars unlicensed for ride-hailing.
- In July, just 41% of Didi rides were fully compliant, while Piggy Express stood only 24%, FT reported.
- Didi’s shares have plunged over 40% since the IPO while rivals enticed its customers and drivers with promotions. The peers include Alibaba Group Holding Ltd’s (NYSE:BABA) Amap, Meituan (OTC: MPNGF) (OTC: MPNGY) Cao Cao Mobility.
- DiDi is yet to report its Q2 earnings, unlike its peers, which reported weeks ago.
- Didi could hit a rough patch if China seeks to split or abandon its exclusive agreements with drivers.
- Price Action: DIDI shares traded lower by 1.45% at $8.16, and BABA shares traded lower by 1.34% at $155.74 in the premarket session on the last check Thursday.
12 Consumer Discretionary Stocks Moving In Monday’s After-Market Session
Gainers
Tuesday Morning (NASDAQ:TUEM) shares rose 71.8% to $0.73 during Monday's after-market session. The market value of their outstanding shares is at $4.3 million.
