Benzinga | Nov 30, 2021 05:01PM EST

China's Latest Ride-Hailing Regulations Likely To Spell Trouble For DiDi, Alibaba

* China's agencies, including the antitrust watchdog, transport ministry, and public security bureau, issued a standard package of rules to protect the rights of the millions of ride-hailing drivers, Bloomberg reports.

* The agencies ordered DiDi Global Inc (NYSE:DIDI) and its smaller rivals to strengthen social insurance for drivers while adopting "reasonable" commissions.

* The agencies warned against using data to take advantage of consumers.

* China will establish local-level supervisory offices staffed by personnel from multiple agencies before the year's end.

* Beijing recently ordered DiDi to delist from the U.S., which carried on its June IPO amid regulatory objections.

* Recently Alibaba Group Holding Ltd (NYSE:BABA) ramped up ride-hailing investments.

* Price Action: DIDI shares traded lower by 7.04% at $7.26 on the last check Tuesday.