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Chinese ride-hailing giant Didi reports record transaction value for June quarter
Chinese ride-hailing giant Didi Global on Wednesday said that both order volume and transaction value reached record highs during the three months through June.
Orders in both China and overseas markets rose 17.4 per cent to nearly 3.9 billion, while gross transaction value (GTV) reached 96.3 billion yuan (US$13.5 billion), up 14.7 per cent from a year earlier, according to its latest earnings report.
“Transactions and GTV also saw healthy growth, and both reached new record highs during the past quarter,” chairman and CEO Will Cheng Wei said.
Didi, which delisted from the New York Stock Exchange in 2022 and now trades on the over-the-counter market in the US, reported a profit of 1.4 billion yuan for the June quarter, compared with a loss of 267 million yuan in the same period in 2023. Revenue grew 4.1 per cent to 50.9 billion yuan.
The company’s growth is a turnaround from its fortunes a few years ago. Its delisting in New York came months after its 2021 initial public offering triggered a cybersecurity investigation by Beijing, which culminated in a US$1.2 billion fine.
Didi had moved forward with the IPO despite warnings from the Cyberspace Administration of China that it should postpone those plans, the Post previously reported. Its apps were subsequently removed from app stores and the platform stopped registering new users. Its main app Didi Chuxing resumed registrations in January 2023.
While the investigation upended the company’s business for a year, it did little to dent its dominance of China’s ride-hailing industry. It continued to see orders rise in 2021, and in 2023, the company saw its first quarterly profit since the investigation.
