The Didi transportation app has once again reported quarterly losses, suffering a severe blow as the Chinese leader in ride-sharing. The company reported a net loss of 1.3 billion yuan ($180 million) in the December quarter, in contrast to profits from the previous year. While revenue rose 7.1 percent to 52.9 billion yuan, expenses also increased, resulting in losses in the international business due to the cost of expansion.
This weak performance reflects Didi's difficult recovery from the regulatory crackdown of previous years. This company, known as China's answer to Uber, has lost much of its market value after the Chinese government imposed drastic measures against data-sharing practices among internet sector companies. As a result, Didi was forced to delist from the main New York Stock Exchange in 2021 and suspended its apps, which significantly affected its results.
Currently, Didi's shares are only traded in the over-the-counter (OTC) market and are well below their IPO price of $14. Despite this outlook, the company aims to list on the Hong Kong stock exchange at an undetermined future date. Meanwhile, Didi is seeking new capital for its autonomous driving unit, which could value the business at around $5 billion, according to Bloomberg News reports.
In China, Didi's mobility business completed a record 35.3 million daily transactions in the last quarter of 2024. Additionally, the company recently approved a two-year stock buyback program of up to $2 billion.
