Meituan quietly revives its stand-alone ride-hailing app as Didi Chuxing faces regulatory storm

First launched in 2017, Meituan removed its ride-hailing app from China’s app stores in 2019
Some regulators now see the Didi listing as a deliberate act of deceit

Didi Chuxing

Minghe Huin Beijing

Published: 5:30pm, 12 Jul 2021

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Meituan, China’s on-demand delivery giant, has relaunched its ride-hailing app as Didi Chuxing, the country’s dominant player, faces a cybersecurity investigation that could erode its 90 per cent market share.

First launched in 2017, but removed by the company from China’s app stores in 2019, the app is now available again on Apple’s iOS App Store and Xiaomi’s Android app store. The app’s update history on the iOS App Store shows that it was added on July 9, one week after Didi was barred from registering new users over data security concerns.

As part of its efforts to take advantage of the situation, Meituan – a powerful lifestyle services player in its own right with 570 million users by the end of March – is quietly positioning itself in opposition to Didi.

Upon opening for the first time, Meituan’s ride-hailing app takes a subtle jab at Didi with its privacy policy that states the platform does not transfer user data to unauthorised third parties or use it for unauthorised purposes. The Cyberspace Administration of China cited improper collection and usage of information when it ordered Didi off app stores.

In addition, Meituan’s app is turning into an “everyone but Didi” platform that includes its own fleet of drivers as well as those from other platforms like Shouqi Limousine & Chauffeur as well as Caocao Chuxing.

Beijing’s crackdown on Didi has offered competitors – long jostling for the remaining 10 per cent of the ride-hailing market – an opportunity to catch up as Didi’s main points of entry, app stores and mini apps on WeChat and Alipay, are now closed off.

Didi-Chuxing's dominance of China's ride-hailing industry.

On July 2, just days after Didi’s blockbuster public listing in the US, China’s internet watchdog ordered Didi to halt new user registration and then two days later ordered all Didi apps off of the country’s app stores on allegations of illegal collection and use of data.

The Post reported earlier, citing sources, that after Didi “forced its way” onto US public markets by ignoring a data assessment, some regulators now see the listing as a deliberate act of deceit.

The regulatory storm is now translating into the largest crisis for the nine-year-old Beijing-based company.

Didi had 493 million annual active users for the 12 months ended in March, around 377 million of them in China. The company also recorded 41 million transactions on a daily basis during the period. In the first quarter, Didi had 156 million average monthly active users.

China’s Big Tech face new reality under Beijing’s data oversight

Existing passengers and drivers who have already downloaded Didi are still able to use its services, and Didi has said it is cooperating with regulators to check security loopholes and to take corrective measures.

For some Chinese users, however, Meituan is already part of their daily life.

Viola Du, a 28-year-old Shanghai resident, said that she has been using Meituan ride-hailing app as a backup even before Didi’s punishment from Beijing.

“During rush hour, I always have to wait a long time before I can get a ride on Didi. Meituan is my backup during these times,” Du said. “Didi isn’t essential for me.

Additional reporting by Jane Zhang

This article appeared in the South China Morning Post print edition as: Meituan makes the most of rival’s woes in relaunch of app

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