Life After the ¥ 8 Billion Hit: How is Didi Faring?
Not too bad…
Table of Contents
Things that Caught Our Attention
Seeking a Secondary Growth Curve
Things that Caught Our Attention
WM Auto's Downfall: Once one of the most funded new energy automakers in China, WM has undoubtedly collapsed. Over the past six months, the equity of multiple companies related to WM Auto has been frozen, totaling over 10 billion yuan. The company has 45 court-ordered enforcements, putting over 100,000 WM car owners at risk of losing access to vehicle services and maintenance. (Source: 36Kr)
Alibaba's 'S Plan': Alibaba.com (B2B) announced the launch of its "S Plan" (S for "Shield" and "Sure"), aimed at helping Southeast Asian businesses affected by Indonesia's new e-commerce regulations. The plan offers a range of support, including one-click product transfer, 3-6 months of traffic support, and customized export plans with professional guidance. (Source: 36Kr)
J&T's IPO: On October 27, J&T Express officially went public on the Hong Kong Stock Exchange, achieving a market capitalization of over 105 billion Hong Kong dollars. J&T Express is a logistical service provider of Pinduoduo and Temu in China. (Source: 36Kr)
CATL's Q3 Financials: CATL announced its Q3 revenue as 105.431 billion yuan, a year-on-year growth of 8.28%; its net profit was 10.428 billion yuan, up 10.66% from last year. (Source: 36Kr)
BYD's Expansion in Hungary: BYD officially entered the Hungarian passenger car market with the opening of two stores in Budapest on October 19. Since announcing its entry into the European passenger car market in 2022, BYD has expanded into 19 European countries. (Source: 36Kr)
Welcome to another edition of our newsletter, where we delve deep into the ever-evolving tech landscape. Today, we're taking you on a ride down memory lane to revisit the subsidy wars in China's ride-hailing market. History is looping back, as platforms reignite the low-price game. Why, you ask? From fierce battles over market share to rejuvenating tepid user demand, the reasons are manifold.
And speaking of fierce battles, we couldn't ignore how Didi, the juggernaut of Chinese ride-hailing, finds itself at a critical juncture. How is Didi navigating these turbulent waters, and what ripple effects can its competitors expect? Read on to find out!
Freya Zhang, Ed Sander & Rui Ma
(click on the images above for information on the Tech Buzz China team)
Last summer, the Chinese government concluded its year-long investigation into ride-hailing giant Didi, slapping the firm with a record-breaking fine of 8.026 billion yuan over data leak issues. This penalty marks the largest ever imposed in China for data protection violations. Didi, one of China's highest-valued tech companies, provides Uber-like services and has garnered extensive influence through them. The regulatory action against Didi is part of a series of significant moves by the government to tighten its grip on the rapidly expanding internet sector in China.
The investigation had a severe impact on Didi's IPO in the U.S., eventually leading to its delisting from the New York Stock Exchange. In a statement, Didi accepted the penalty and vowed to enhance its data security. "We sincerely appreciate the regulatory guidance and public scrutiny," said the company.
During the investigation, Didi was barred from registering new users, and several of its mobile apps were removed from app stores. Competitors led by Amap seized over 20% of the market share, while Didi could only counter with its budget-friendly independent ride-hailing brand, Huaxiaozhu (花小猪), to limited effect. Not until this January did the government finally "lift the ban," allowing for new user registrations and growth.