Start-up – Beijing wants to control Didi – economy

The government of the Chinese capital city is apparently considering bringing the Didi transport service under state control. It is proposed that state-owned companies invest in Uber’s rival and take control of veto rights and seats in oversight bodies, the Bloomberg news agency reported, citing anonymous sources. So far Didi is controlled by co-founder Cheng Wei and manager Jean Liu, they hold 58% of the voting rights. Uber and the Japanese group Softbank are also involved. Neither the startup nor the city government commented on the report. Didi, however, has come under heavy pressure from the state for some time. For example, just days after its New York IPO, Beijing banned the company from continuing to offer its apps in Chinese app stores – due to “serious breaches” in the handling of personal data.

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