Regulation Changes Hurt Didi

Didi Chuxing is struggling with talks on a new government policy. The proposed policy would force Didi to hire only local residents as drivers, require drivers to be locally registered and enforce general higher standards on the company. This change could eliminate up to 80% of the company’s Shanghai vehicles. Didi is optimistic that the policy, which is still in draft form, will be loosened, and has been working with the Chinese government to find common ground. Analysts report Didi will likely leverage ties with the government to reduce the policy’s impact on operations.

Shanghai Business Review is the leading English language website and print magazine for business leaders conducting business in China.

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