Didi Aims to be More than Uber of China

Didi filed Thursday to list in New York in what many expect could be the largest initial public offering in the world this year. Founded in 2012, the company ranks among the five largest privately held start-ups in the world and counts SoftBank, Uber and Tencent as major investors.

Smartphone-based ride hailing in China remains Didi’s primary business, generating $20.4 billion in revenue last year amid overall net losses of $1.62 billion, according to the prospectus. But as Didi swung to a profit in the first quarter of this year, the revenue share of “other initiatives” rose to 5%, from 4% for all of 2020. That’s up from 1.2% in 2018.

A quick look at Didi’s smartphone app reveals a slew of other products tied to bike sharing, movers, personal finance and gas stations. The array of icons resembles that of Alibaba-affiliated Alipay, whose app is not only a mobile pay platform but one that allows users to book airplane tickets and pay for utilities. Similarly, Southeast Asia’s prevailing ride-hailing app Grab delivers food and wants to become a regional leader in mobile payments.

Didi is the primary app for ride hailing in China, even with the entry of several other players, including ones that focus on the high-end (Shouqi) or new energy vehicles (Cao Cao).

The company said it had 377 million annual active users and 13 million annual active drivers in China for the 12 months ended March 31. Didi said it made 133.64 billion yuan ($20.88 billion) in the “China mobility” category last year.