China’s Didi Q3 revenue up 8.6% as costly overseas expansion accelerates

[BEIJING] Didi Global reported an 8.6 per cent rise in third-quarter revenue on Wednesday (Nov 26) as the international expansion of China’s largest ride-hailing platform accelerated, while its domestic market remained stable.

Didi operates China’s dominant ride-hailing platform and has expanded internationally, primarily in Latin America, offering both ride-hailing and food delivery services.

Revenue reached 58.6 billion yuan (S$10.8 billion) for the three months ended Sep 30, the company said on Wednesday. Net profit for the period was 1.5 billion yuan, compared with 900 million yuan in the same period last year.

The international segment, while representing a small fraction of total revenue, grew 35 per cent to 3.96 billion yuan. Revenue from Didi’s China Mobility segment rose 7.6 per cent to 51.8 billion yuan.

Accelerating overseas investment

The company has accelerated overseas investment this year, notably expanding food delivery to additional cities including Sao Paulo in August.

The international expansion weighed on profitability, with adjusted losses from the overseas segment rising by 1.4 billion yuan to 1.7 billion yuan.

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In China, Didi maintains its leading position in ride-hailing while facing intensifying competition from rivals including Alibaba and Meituan.

These companies have integrated ride-hailing into broader digital ecosystems, appealing to users who prefer consolidated super-apps that connect passengers with multiple service providers, including smaller regional operators.

Didi resumed expansion in early 2023 after a regulatory crackdown that began in 2021 when the company pursued a US initial public offering without Beijing’s approval. REUTERS