In April, Didi was one of nearly three dozen Chinese internet companies dragged in front of regulators and ordered to ensure their compliance with antimonopoly rules and “put the nation’s interests first”.
Didi promptly published a statement that the antitrust authority published on its website, in which it promised to “promote the development and prosperity of socialist culture and science” and to strictly abide by the law.
Didi Dache was founded in Beijing in 2012 and merged with Chinese rival Kuaidi Dache to form Didi Chuxing in 2015. Although Uber tried to compete in the Chinese market, it eventually sold its Chinese operations to Didi in exchange for an interest in the company.
In a filing for its IPO, Didi said revenue fell 8 percent to $ 21.63 billion last year because of the pandemic. Didi lost $ 1.6 billion last year, despite posting a profit of $ 30 million in the first quarter of this year.
Although Didi is dominant in China and operates in 14 other countries including Australia, Brazil, Mexico, and Russia, its valuation is well below Uber’s $ 95 billion. Still, it dwarfs Lyft, the second largest ride hailing company in the United States, which is valued at nearly $ 20 billion.
Didi said the company is able to continue growing as it expands its business into new international markets. “We strive to become a truly global technology company,” wrote Didi’s founders, Cheng Wei and Jean Liu, in a letter accompanying the submission.
Didi was valued at $ 56 billion in 2017, and its investors include SoftBank of Japan; Mubadala, an Abu Dhabi state fund; Alibaba and Tencent, China’s two main Internet Goliaths; and Apple, which invested $ 1 billion in 2016 to demonstrate its support for the Chinese market.