DIDIY - Beijing to bring state-owned rideshare service targeting Didi

China is set to launch a state-owned transportation platform that includes ride-hailing and flight services, as Beijing keeps a strong hand on tech sector. The platform, called Strong Nation Transport, will initially target Communist party members and employees of government-owned enterprises, challenging market leader Didi ( OTCPK:DIDIY ).

While Didi ( OTCPK:DIDIY ) had once dominated about 90% of China's ride-hailing market, it was slapped with a ~$1.2B fine for breaking data security laws and ordered to rectify its data-collection practices. Didi ( OTCPK:DIDIY ) also listed on the NYSE in June 2021, but was pulled down after a 11-month stunt. Chinese regulators shut its 26 apps from app stores and blocked them from enrolling new customers.

News flew late on Monday that Didi Global ( OTCPK:DIDIY ) had returned to app stores in China and resumed new user registration.

State-owned ride-hailing seems to be a move in line with officials keeping a heavy hand on local tech giants. Earlier this month, state groups took 'golden shares' in e-commerce group Alibaba and gaming giant Tencent. These stakes generally come with a board seat and could sway management decisions.

Read contributor article on Didi: ' The Outlook For DiDi Global Amid Easing Regulatory Tensions '

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