Didi headquarters in Beijing
AFP via Getty Images
The founder and president of Didi Global reportedly has told some close associates that she intends to step down as the Chinese ride-hailing giant has rankled regulators since going public in June.
President Jean Liu told some associates in recent weeks she expects the government to eventually take control of Didi (ticker: DIDI) and appoint new management, according to a report from Reuters, which cited two sources familiar with the matter.
A report from Bloomberg earlier this month said Beijing was considering an investment in Didi that would give state-run firms control of the company.
Beijing’s municipal government has proposed that Shouqi Group—part of the Beijing Tourism Group—and other firms take control of China’s largest ride-hailing app, Bloomberg reported. Takeover by a consortium leading to a “golden share” with a board seat and veto power also reportedly were being considered, the report said.
The company told Reuters Monday it was “actively and fully cooperating with thecybersecurity review. Reuters’ rumors about management changesare untrue and unsubstantiated.”
Didi has faced broader scrutiny in recent months, with pressure from Beijing centering on cybersecurity and the handling of sensitive user data—especially by a company listed in the U.S. and beholden to American financial regulators. The stock has slumped about 45% since its initial public offering in June.
American depositary receipts of Didi fell 4.93% to $7.89 on Monday.
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