• About
  • Advertise
  • Careers
  • Write for us
  • Contact
  • Terms of service
Sunday, June 26, 2022
The Millennial Source
TMS
Home WORLD

After the announcement that DiDi’s planning an IPO, what’s next?

byCaleb Moll
June 16, 2021
in WORLD
After the announcement that DiDi’s planning an IPO, what’s next?

Source: Florence Lo, Reuters

Share on FacebookShare on TwitterShare on Linkedin
The company is looking to go public in the near future following the recent release of its initial public offering.

  • DiDi is a popular ride sharing company in China that offers more than just taxi services in order to stay competitive in the country. 
  • The company is looking to go public in the near future following the recent release of its initial public offering.

What is DiDi?

  • DiDi, which is headquartered in Beijing, has over 550 million users and tens of millions of active drivers.
  • The company, whose name translates to “beep-beep” like a car horn, was founded in June 2012 by then 26-year-old Cheng Wei after he spent eight years working for Alibaba. 
  • The company originally started out as an Uber clone, offering rides and jobs for drivers much like the popular San Francisco-based company does.
  • Only five months after it was founded, Tencent invested US$15 million in the company.
  • DiDi has consistently been considered one of the most valuable tech startups in the market and it offers a lot more than its American rival, Uber.

Are DiDi and Uber competitors?

  • At one time, the companies were rival operations in China, but that hasn’t been the case since 2016. 
  • In 2016, DiDi acquired Uber China after Uber’s then-chief executive officer, Travis Kalanick, claimed the company was losing over US$1 billion annually in China.
  • Part of the deal gave Uber the opportunity to own about 15% of the company, so the former rival is now invested in the success of DiDi.

Does DiDi have any other competitors?

  • Many companies in China seem to almost be required to offer more than a single service in order to stay competitive. 
  • DiDi itself offers more than just ride-sharing, allowing customers the option of automobile maintenance and financial services and even bike-sharing. 
  • Meituan-Dianping is a competitor to DiDi and is currently aiming for a valuation of US$55 billion while offering a wide range of internet services such as hotel booking and food delivery.
  • “The Didi-Uber fight is purely about ride-sharing,” Ken Xu, a partner at Shanghai-based investment firm Gobi Partners said. “But Meituan is a more powerful rival because it can combine car-hailing with multiple online services to bring more user traffic.”
  • Despite its investment, Alibaba owns another competitor to DiDi, the GPS mapping company AutoNavi. AutoNavi has recently started offering ride-sharing jobs to drivers and is reportedly allowing them to take 100% of the profits. 

What’s going on with DiDi’s IPO?

  • DiDi recently filed for an IPO with the intention of going public.
  • In other words, DiDi is looking to find more investors by giving the general public the opportunity to invest in the company. 
  • Didi – which is backed by Tencent, Alibaba and Softbank – was most recently valued at an incredible US$62 billion following a round of fundraising in August.
  • By the time Didi goes public, experts predict that the company will be valued as high as US$100 billion, even more than Uber.

What comes next for investors and DiDi? 

  • Earlier this month, American President Joe Biden announced that investors would not be able to invest in companies that have ties to the Chinese military. 
  • While this doesn’t directly affect DiDi, the mounting tension between the United States and China may have negative effects on the company as it looks to go public.
  • Despite the recent bans and tensions between the US and China, DiDi’s CEO and founder Cheng Wei remains optimistic about the company’s future. 
  • “We aspire to become a truly global technology company. While our business started in China, we believe we can help make life better for many more people around the world in a similar way,” said Cheng. “What we have learned and built is relevant across the globe – in Latin America, Russia, South Africa or anywhere where affordable, safe and convenient mobility is valuable.”

Have a tip or story? Get in touch with our reporters at [email protected]

Like TMS? Subscribe to our free daily newsletter

Related

Tags: AsiaBusinessLonger readNorth Americastartupssuperpower relationstech giants
ShareTweetShare

Latest Posts

Australia mining

Western Australia’s mining industry probe uncovers numerous cases of sexual abuses

June 24, 2022
Juul banned

The US orders Juul vapes off the market. Here’s what you need to know

June 24, 2022
Putin meeting

What you need to know about the BRICS summit, Putin’s first major multilateral meeting since invading Ukraine

June 23, 2022

US Senate agrees to fast-track new gun law

June 23, 2022

The fourth day of the January 6 hearings show Trump’s pressure campaign on election officials

June 22, 2022

What did Elon Musk say at the Qatar Economic Forum?

June 22, 2022

Russia has become China’s biggest oil supplier

June 21, 2022

Biden says he’s making up his mind about the Trump-era US tariffs on China

June 20, 2022

France, Germany, Italy and Romania support Ukraine’s membership into the EU

June 17, 2022

SUBSCRIBE TO THE TMS NEWSLETTER

By providing your email, you agree to our Privacy Policy

The Millennial Source Ltd. 2021

No Result
View All Result
  • Your daily briefing
  • About us
  • Explore
    • Startups
    • Climate change
    • Tech giants
    • Crypto
    • The future of work
    • Banking giants
    • Economy
  • Lifestyle
  • Human stories
  • TMS archives
  • Write for us
  • Contact
  • Privacy Policy & Terms

2022 The Millennial Source Ltd.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

We are using cookies to give you the best experience on our website.

You can find out more about which cookies we are using or switch them off in settings.

string(24) "jsonld single post debug"
The Millennial Source
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.