Start-up – Beijing wants to control Didi – economy


The city government of the Chinese capital is apparently planning to bring the Didi transport service under state control. There is a proposal that state-owned companies should invest in the Uber rival and take over veto rights and seats on the supervisory bodies, the news agency reported Bloomberg with reference to anonymous sources. So far Didi is controlled by co-founder Cheng Wei and the manager Jean Liu, they hold 58 percent of the voting rights. Uber and the Japanese Softbank group are also involved. Neither the start-up nor the city government commented on the report. Didi, however, has been under great pressure from the state for some time. For example, just days after its IPO in New York, Beijing banned the company from continuing to offer its apps in Chinese app stores – because of “serious violations” in the handling of personal data.

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