Didi’s situation highlights the unpredictable nature of regulation in China, where start-ups operate in sectors that lack clear policy guidance. If the local residency policy is implemented, Uber’s sale of its unprofitable China business to Didi, along with a cash injection from the Chinese company, might give Travis Kalanick the last laugh. The Chinese company also agreed to invest $1 billion in Uber’s global company, people familiar with the matter said at the time. Song continues to use Didi because he said past cases suggest the company will fully reimburse drivers for fines. “I don’t really care about the new rules, but I do think it’s very unreasonable to limit people by their residency.” Bloomberg

Source: Mint November 15, 2016 04:10 UTC