Xi’an orders Didi Chuxing to ban unlicensed vehicles, threatening more than half its fleet in the city

The ban follows an investigation into Didi’s operations in the city which found that 54 per cent of the 964 vehicles investigated lacked proper licences

Only 30 per cent of vehicles operating on Didi’s platform met regulatory requirements, according to the country’s transport ministry

Reading Time:2 minutes

Published: 7:00pm, 2 Aug 2021Updated: 11:22pm, 2 Aug 2021

The western Chinese city of Xi’an has ordered ride-hailing giant Didi Chuxing to ban unlicensed vehicles from operating on its platform, a move that could take more than half of the company’s fleet off local streets if followed and the first salvo by a local authority against the company since it became the target of a national cybersecurity review.

The ban by Xi’an, a city of 13 million people, follows an investigation into Didi’s operations in the city which found that 54 per cent of the 964 vehicles investigated lacked proper licences, prompting investigators to bring in Didi’s local area manager for a lecture.

“There are risks with unlicensed vehicles in the areas such as car safety, insurance coverage and passenger safety,” said the Xi’an traffic authority on Sunday. “This has disrupted order in the passenger transport market and damaged the interests of drivers with proper licenses,”

Calling the data provided by Didi “fraudulent”, the authority also said the company had failed to supply regulators with “whole, up-to-date and accurate” operational data, causing a “big blind spot” for the city’s regulators.

Didi has not been allowed to take on new users since the start of the cybersecurity investigation, after it “forced its way” to a US listing, almost one month ago.

In addition, as of June, only 30 per cent of vehicles operating on Didi’s platform met regulatory requirements, according to the latest data from the country’s transport ministry.

Xi’an orders Didi Chuxing to ban unlicensed vehicles, threatening more than half its fleet in the city

The ban follows an investigation into Didi’s operations in the city which found that 54 per cent of the 964 vehicles investigated lacked proper licences Only 30 per cent of vehicles operating on Didi’s platform met regulatory requirements, according to the country’s transport ministry

The ban follows an investigation into Didi’s operations in the city which found that 54 per cent of the 964 vehicles investigated lacked proper licences

Only 30 per cent of vehicles operating on Didi’s platform met regulatory requirements, according to the country’s transport ministry