Didi’s EXCLUSIVE co-founder Liu told associates she plans to leave – sources

HONG KONG / SHANGHAI, Sept.20 (Reuters) – Co-founder and president of Didi Global Inc (DIDI.N) Jean Liu has told some of her relatives that she intends to step down, two sources said close to the record, as the Chinese hail giant race comes under intense regulatory scrutiny after it entered New York City earlier this year.

Liu, 43, has told some of her associates in recent weeks that she expects the government to eventually take control of Didi and appoint a new leadership, the two sources said.

Liu, a former Goldman Sachs Group Inc (GS.N) banker, told a few executives close to her in recent weeks – including those who had followed her to join Wall Street Bank Didi – that she was planning to leave and encouraged them to start looking for new opportunities as well, said one of the sources who were briefed on the matter.

Some of those executives have since contacted industry contacts for job leads, the source said.

Reuters could not get more details, including whether Liu had submitted an official resignation letter or set a date to leave.

Didi said he “is actively and fully cooperating with the cybersecurity review. Reuters rumors of the leadership changes are false and unfounded.”

Liu did not respond to Reuters’ request for comment sent via company spokespersons.

Didi shares recently lost nearly 5% in US trading on Monday. The benchmark S&P 500 (.SPX) recently lost around 1.7% in a sell off fueled by concerns over heavily indebted Chinese real estate company Evergrande.

Didi, sometimes referred to as the Uber of China, has been under close scrutiny since early July by Chinese authorities for its collection and use of personal data of users of its service, its pricing mechanisms and competitive practices.

The authorities have launched a massive crackdown on private companies, including those in the tech sector, to control big data and break monopoly practices. Read more

Billionaires hit by high-profile announcements, such as Didi’s debut at $ 4.4 billion, have fallen out of favor as President Xi Jinping warns of the country’s vast income inequalities.

Didi clashed with the powerful Cyberspace Administration of China (CAC) when it continued its debut on June 30, despite the regulator urging the company to put it on hold while it undertook a cybersecurity review of its data practices, according to those with knowledge of the matter.

Shortly after enrollment, the ACC announced an investigation into Didi and subsequently ordered the removal of its downloadable apps in China. Officials from at least six other departments were also involved. Read more

Reuters could not find out whether regulators had called for Liu’s departure and what would happen to other executives, such as Didi chief executive officer Will Cheng.

One of the sources familiar with Liu’s plans said that Harvard alumni and daughter of Lenovo Group founder Liu Chuanzhi also spoke of leaving Didi in the years leading up to the current regulatory crisis to try their hand at something. something new.

ACC did not respond to Reuters’ request for comment, while Didi did not respond to specific questions.

Liu joined Didi in 2014. She owns a 1.6% stake, currently worth approximately $ 640 million, in the company and controls 23% of the votes, through a dual class share structure. , according to the company’s prospectus.

She was deeply involved in the main financial decisions of the company, including its merger with Kuaidi, backed by Alibaba Group Holding Ltd (9988.HK), in 2015, the takeover of the activities of Uber Technologies Inc (UBER.N) in China and fundraising from investors, including Apple. Inc (AAPL.O).

Liu also oversees Didi’s other affairs, including human resources, and represents the company in external communications, especially during crises.

Reporting by Julie Zhu in Hong Kong and Zhang Yan in Shanghai; Editing by Sumeet Chatterjee and Edward Tobin

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