While Didi Chuxing is under all-round pressure from Chinese authorities in the name of national security, Meituan is seeking to expand its scope in the car-sharing service market.
According to Chinese media on the 12th, Meituan posted “Meituan Dache,” an application dedicated to car sharing services, again on major Chinese app stores on the 9th. Meituan is a company listed on the Hong Kong Stock Exchange.
Earlier in 2018, Meituan challenged Didi Chuxing by starting to provide car sharing services in some areas, including Shanghai, but failed to overcome bleeding competition with Didi Chuxing and took steps to retreat by lowering apps from major app stores the following year.
When Meituan re-launched the exclusive app, the industry is interpreting whether it has revealed its intention to return to the car sharing market in earnest, taking advantage of Didi Chuxing’s absence. Meituan has expanded its car-sharing service areas to more than 100 cities across China, including Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen, Hangzhou and Nanjing.
In addition, the service contract presented to new customers included, “We collect, preserve and use your personal information in accordance with the principles of political parties, law and need,” which is interpreted as a measure conscious of Didi Chuxing being investigated on charges of illegal collection of customer information.
Didi Chuxing was listed on the New York Stock Exchange on the 30th of last month, a day before the centennial anniversary of the Communist Party’s founding, but was placed on the list of national security investigations by Chinese authorities just three days later. Since then, Chinese authorities have ordered all Didi Chuxing apps to be released from major app stores.
On the 10th, the Chinese government further strengthened the pressure by issuing an order banning downloading 25 applications operated by Didi Chuxing. At the time, foreign media and others assessed that China is openly sending a message that it no longer wants its large technology companies with sensitive big data to be listed on the U.S. stock market amid the U.S.-China New Cold War.
