Benzinga | Sep 1, 2021 07:20AM EDT

DiDi, Alibaba's Latest Strategy To Counter Tech Crackdown

* China's Uber Technologies (NYSE:UBER) equivalent DiDi Global Inc (NYSE:DIDI) is exploring a landmark move to set up a union for its staff, Reuters reports.

* The company's Beijing headquarters' employees will manage the union, and the government-backed All-China Federation of Trade Unions (ACTFU) will guide the union.

* The union will likely welcome Didi's drivers lacking full employee benefits, Bloomberg reports.

* Didi had recently introduced a driver pay transparency feature in its app amid criticism. In July, China issued guidance on safeguarding the rights of gig economy workers and suggested the formation of unions.

* Food delivery leader Meituan (OTC:MPNGY) is also studying the feasibility of internal labor rights organizations. Alibaba Group Holding Ltd (NYSE:BABA) employees also harbor similar aspirations.

* In the U.S., Amazon.com Inc's (NASDAQ:AMZN) Alabama workers had opposed joining a union earlier this year.

* Price Action: DIDI shares traded higher by 0.73% at $8.22 in the premarket session on the last check Wednesday.