China is about to launch a transport app to deal with Didi in that country. According to Financial TimesXi Jinping’s government prepares a new platform focused on members of the Communist Party and state employees. Known as Strong Nation Transport, the communist uber It will be supported by the Ministry of Transport and other state agencies.
The report indicates that it will be coming soon for users of Xuexi Qiangguo, an app designed for members of the Communist Party. That means Strong Nation Transport will have a base of more than 100 million people at its release. Users will be able to book cars through all ride-sharing providers operating in China.
according to the newspaper beijing dailythe “communist Uber” responds to an out-of-order sprawl and data security issue in the mobility industry. The transport app will offer specialized services with the promise of protecting the privacy of its users. “Strong Nation Transport is based on the principles of convenience and security,” said the official media.
Although there is no concrete information on its availability, the Government announced that Strong Nation Transport would allow booking a trip from WeChat, Alipay and the Chinese version of TikTok. There are also plans to integrate transportation by road, air or sea transport, rail and cargo services. The new platform wants to gain ground in a segment dominated by Didi and has an aggressive strategy to achieve it.
China seeks to position its transportation app after hitting Didi
Strong Nation Transport’s announcement comes at a difficult time for its closest competitor: Didi Chuxing. The transport platform suffered a setback after Chinese regulators demanded its removal from app stores. A few months ago, the Xi Jinping administration launched a crusade against bigtech that had a presence outside of China.
In the case of Didi, the blow came after it began to be listed on the stock market. Days after the company went public, the Cyberspace Administration of China (CAC) launched an investigation against Didi, alleging that she had illegally collected users’ personal data. The CAC ordered it to suspend new registrations and removed 25 company-operated apps from all app stores.
Before the debacle Didi had become the dominant company in this sector after buying the business from Uber in 2016. The number of active users who book a trip on the platform amounted to 500 million per year. The passage of China’s Data Security Law and Personal Data Protection Law meant that companies with data of more than 1 million users would have to undergo a security review before listing abroad.
The Government will reactivate its economy after months of restrictions due to COVID-19
The investigation severely affected Didi’s business and forced her to delist from the New York Stock Exchange. After 18 months, the Chinese regulator granted it a reprieve and allowed the registration of new users to begin. The application will start operating again, although now it will have to face competitors such as Cao Cao Mobility, T3 Chuxing or Strong Nation Transport itself.
China seeks to revive its economy after three years of restrictions caused by the coronavirus. The first step will be to soften the sanctions against big technology companies, although without losing control over its users. For reference, the Xuexi Qiangguo app for which the communist uberhas access to all the personal information of the members of the Communist Party, including biometric and health data, location and even deleted content.