Didi Chuxing is back in the public eye again for a second murder over the short period of three months. Didi reportedly failed to investigate into an earlier complaint against the accused driver who committed the second murder.
Despite introducing new features like mandatory facial-recognition and its recent in-car video recording project, all these attempts seemed futile in the wake of the latest murder. The arrested driver is said to have passed background checks, including the facial-recognition scan, with no prior criminal record.
Zhejiang province transport authority has ordered Didi to suspend its hitching services in the province, as the firm looks to beef up its security alongside ongoing investigations.
In addition, the company has acknowledged responsibility for not following up on the earlier complaint against the accused driver prior to this latest incident. Didi has since dismissed two staff and is set to offer a minimum of three times the required financial compensation by law to the family of the victim in Leqing.
Takeaways
– This comes at a time when Didi is reeling from the pressure of missing internal targets amid increased competition with Alibaba, Meituan and other players.
– The second murder in 3 months has generated a greater public outcry which could have a detrimental effect on Didi’s planned IPO for H2 2018.
– The effectiveness of safety measures implemented by Didi are likely to be questioned, with more measures expected. It also potentially serves as a warning to the other ride-hailing operators worldwide such as Uber, Grab, and Lyft.
Editor: Shiwen Yap, Ben Jiang