Shares of Chinese ride-hailing company, Didi (DIDI) sank after regulators asked the company to delist from the U.S.
Why this matters: This decision from Chinese regulators comes amidst concerns about the possible leakage of sensitive data. The Cyberspace Administration of China has asked Didi to work out the details for a delisting which will be subject to government approval. Didi apparently enraged regulators by going public without resolving outstanding cybersecurity issues that the authorities wanted to be solved. (CNBC)
Uber could be shutting down in Brussels
Uber (UBER) announced that its Brussels drivers may no longer be able to work for the company.
Why this matters: The company has been ordered to stop offering its main ride-hailing service in Brussels. The Brussels Appeal Court ruled that a 2015 ban on private individuals offering taxi services also applies to professional drivers. Angry drivers blocked roads across the city in a protest, in response, the Brussels government agreed to actively look for a temporary solution for Uber. (CNBC)
Airline and Travel companies are concerned
Concerns over the new COVID variant detected in South Africa are threatening to derail the travel industry’s recovery.
Why this matters: The fresh travel restrictions, and the prospect of more being introduced around the world, are hitting travel stocks. Analysts think that headlines calling it the ‘worst ever variant’ have caused investors to panic and dump shares in travel-related stocks for fear that the tough travel restrictions will return soon. (Barron’s)