China’s biggest ride-hailing company Didi Chuxing has warned there’ll be an adverse impact on its revenues after its app was far away from Chinese stores.
China’s internet regulator ordered app stores to stop offering Didi’s app on Sunday.
It says the firm illegally collected users’ personal data.
It comes just days after the tech giant began selling shares on the NY stock market.
The removal does not affect existing users but will prevent new users from registering on the country’s biggest ride-hailing platform.
“The company will strive to rectify any problems, improve its risk prevention awareness and technological capabilities, protect users’ privacy and data security, and still provide secure and convenient services to its users,” Didi said in a statement.
That came after the Cyberspace Administration of China (CAC) said: “After checks and verification, the Didi Chuxing app was found to be in serious violation of regulations in its collection and use of personal information.”
Two days earlier, the CAC announced it was investigating the firm to protect “national security and the public interest”, prompting Didi’s shares to drop by 5.3%.
Didi gathers vast amounts of real-time data every day. It uses some of the data for autonomous driving technologies and traffic analysis.
Last week, China’s answer to Uber made its debut on the NY stock market and at the top of Friday’s trading had a market valuation of just about $74.5bn (£53.9bn).
The company raised $4.4bn within the Initial Public Offering (IPO), in what was the most important listing within the US by a Chinese company since Alibaba’s debut in 2014.