What happened: China’s on-demand service platform Meituan-Dianping said it would halt further expansion into China’s ride-hailing market as Didi Chuxing has been deeply strained over the murder of a passenger in late August. Meituan said the decision was made after evaluating “the synergistic value” of car-hailing services and the current market dynamics.
Why it’s important: Meituan started pilot ride-hailing operations in Shanghai and Nanjing earlier this year and had expected to expand to at least five cities. Meituan is seeking initial public offering in Hong Kong, and the further regulation and possible risks of running the ride-hailing business made Meituan shy away. According to analysts, Meituan’s retreat from the market will not affect Didi much since Meituan only operates in two cities.