– Ride-hailing service Didi Global Inc is considering giving up control of its valuable data as part of efforts to resolve a Chinese regulatory probe, Bloomberg News reported on Friday, citing people familiar with the matter.
Days after Didi’s market debut, China’s cyberspace regulator launched an investigation into the company and asked it to stop registering new users, citing national security and the public interest.
Didi, which listed in New York recently after raising $4.4 billion in an initial public offering, has put forth proposals to appease the regulator, including conceding management of its data to a private third party, the report said https://www.bloomberg.com/news/articles/2021-08-06/didi-is-said-to-weigh-giving-up-data-control-to-appease-beijing on Friday.
Regulators have also shown a preference for the third party to be state-controlled, Bloomberg said, citing a source.
The company’s shares on the New York Stock Exchange rose about 5% before the opening bell. Didi did not immediately respond to Reuters request for comment.
Didi had last month denied a media report that said it was considering going private to placate Chinese authorities and compensate investor losses since it listed in the United States.