China’s Uber, DiDi, files its US IPO

DiDi — the ride-sharing company that holds 90% of China’s market share — filed for its US IPO last week. Its valuation could hit $70B+, per The Wall Street Journal.

Known as China’s Uber…

… DiDi was founded in 2012, then merged with competitor Kuaidi in 2015. A year later, it merged with Uber China in exchange for a stake in DiDi, which Bloomberg pegs at 12.8%.

DiDi now operates in 15 countries — including Mexico, Brazil, Australia, and recently South Africa — but only ~12% of its active users are outside of China, per Protocol.

DiDi may not ever be profitable

Though DiDi has lost money in the last several years — including $1.6B last year — it turned a profit of ~$30m in the first 3 months of 2021.

Still, it noted to investors that the company “may not be able to achieve or maintain profitability in the future.” Just like Lyft. And Uber.

Also not unlike US ride-sharing companies, DiDi has had several controversies, including allegations of high driver-commission fees and a report that suggested iPhone users were charged more.

Far worse, in 2018, DiDi suspended its carpooling service Hitch after 2 female passengers on 2 separate occasions were murdered.

DiDi plans to spend the net profits of its offering like this:

• ~30% on expanding globally
• ~30% on shared mobility, EV, and autonomous driving tech
• ~20% on developing new products and expanding existing offerings
• The rest on “general corporate purposes”

And this may be obvious, but DiDi’s ticker will be… $DIDI.