Didi posts Q2 loss of US$350 million on lawsuit provision

[BEIJING] Chinese ride-hailing giant Didi Global reported on Thursday (Aug 28) a second-quarter net loss of US$350 million, driven by a one-off charge, even as revenue rose 10.9 per cent, partly fuelled by growth in overseas business.

The loss was largely due to a provision of 5.3 billion yuan (S$954.2 million) for a previously disclosed shareholder lawsuit, while spending on marketing and other expense also increased, reflecting intensifying domestic competition.

Didi maintains its dominant position in China’s ride-hailing sector, but pressure from rivals is mounting.

Companies such as Alibaba and Meituan have integrated ride-hailing services into broader digital offerings, attracting users who prefer consolidated super-apps.

These platforms operate as aggregators, linking passengers with ride-hailing providers, including smaller regional operators.

Revenue rose to 56.4 billion yuan from 50.9 billion yuan a year earlier.

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The overseas business, while still a small portion of overall revenue, has grown rapidly, including growth of 28 per cent in the second quarter.

Didi returned to business expansion early in 2023 following a regulatory crackdown begun in 2021 after the company pursued a US initial public offering without Beijing’s approval. REUTERS