Didi announces first, albeit delayed, update of its ride-hailing app since Beijing ban and cybersecurity probe
- Didi introduces more transparency on driver payments, a new feature it had promised to add in July
- Announcement marks the first time Didi has updated its app publicly since it was taken off app stores in early July amid regulatory probe
Didi Chuxing, whose main app was taken off app stores in China in early July at Beijing’s behest, said it has updated a billing function for drivers as previously promised, in a sign that it is working on the app to meet the demands of regulators.
The ride-hailing giant said in a statement on its official Weibo account on Monday that it has added a new feature to its driver app, which provides a detailed breakdown of a driver’s income for each ride and the share a driver earns from each passenger payment over a seven day period, to boost “transparency” in billing for drivers.
This is the first time that Didi has made an announcement about its app since it was banned on July 2 by the Cyberspace Administration of China (CAC) from taking on any new clients, just two days after it “forced its way” to a US$4.4 billion initial public offering in New York.
The new driver income feature, which also allows Didi drivers to see what incentives they have received, comes after Didi promised in May to add such a feature for all drivers by July. Didi did not explain the delay or comment on the current cybersecurity probe.
Didi said in Monday’s statement that the new feature would only be available for drivers in seven Chinese cities, including Shenyang and Changchun, although Didi intends to roll it out to more cities after collecting feedback from drivers.
A task force led by CAC along with other six government agencies, entered Didi’s premises on July 16 to conduct a cybersecurity investigation. Didi said in a statement last week that it was “actively and fully cooperating with authorities in the cybersecurity review”.
Didi has denied media reports that it would be delisted from New York, reshuffle its management team, or hand its data to a third-party to manage.
Apps from Didi, the dominant player in China’s ride-hailing market with a share of about 90 per cent, were removed from Chinese app stores in early July but its main app remains functional for the 13 million drivers and 493 million users who had already downloaded it.
A Didi driver in Beijing, surnamed Liu, said it was hard to shift platforms because Didi is the biggest, providing a steady flow of orders. “Didi is also very supportive to drivers with training and benefits,” Liu said.
While Liu comes from Hebei province and is legally not permitted to work as a full-time taxi driver in Beijing, he said Didi had provided the necessary support to keep him in business. “I was fined 10,000 yuan by the traffic authority, and Didi reimbursed it,” Liu said.
CAC said on July 4 that Didi’s app had violated regulations when collecting and handling user data, and ordered Didi to “rectify existing problems to ensure the information security of users”.
Sun Shu, the chief executive of Didi’s ride-hailing unit and head of the drivers committee, stated in a public letter at the end of May that it collected more than a 30 per cent share of fares from only 2.7 per cent of all rides in 2020, and that this has since been reduced.
