Founder of China’s taxi-hailing giant Didi plans to quit, expects govt to takeover firm

<p>
China’s taxi-hailing giant Didi Global Inc co-founder and President Jean Liu has told some close associates that she plans to quit the top job as she expected the government to eventually take control of the company and appoint a new management, according to a Reuters report which attributed the information to sources.</p>
<p>
The company has been facing rigorous regulatory investigation after it listed on the New York stock exchange earlier this year. This has been part of China’s crackdown on private companies, including the tech giants, who dominate the market and control big data.</p>
<p>
Billionaires of tech giants such as Ali Baba and Didi's who were the poster persons of the country’s fast-growing new economy have fallen out of favour as Communist China’s strongman President Xi Jinping sees a huge income inequality caused by their operations.</p>
<p>
Liu, 43, a former Goldman Sachs Group banker, has reportedly told some executives close to her that they should also start looking for new opportunities, according to the Reuters report from Shanghai.</p>
<p>
However, Didi said it is "actively and fully cooperating with the cybersecurity review. Reuters' rumours about management changes are untrue and unsubstantiated."</p>
<p>
Liu did not respond to Reuters request for comment sent via the company spokespersons.</p>
<p>
Chinese authorities have accused Didi of improper collection and use of personal data of users of its service, unfair pricing mechanisms and hurting competition.</p>
<p>
Didi is reported to have rubbed the powerful Cyberspace Administration of China the wrong way when the company went ahead with its $4.4 billion debut on June 30, despite the regulator telling the company to put it on hold. A cybersecurity review of its data practices was being carried out at the time, according to people with knowledge of the matter.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/alibaba-plunges-into-first-ever-loss-as-jack-ma-pays-price-for-speaking-up-87922.html">Alibaba plunges into first ever loss as Jack Ma pays price for speaking up</a></strong></p>