News

Didi: Chinese ride-hailing giant files to go public in US

Didi: Chinese ride-hailing giant files to go public in US
Technology
However, the company could raise around $10 billion and seek a valuation of close to $100 billion, sources familiar with the matter told Reuters.

That would make it the biggest share offering in the United States by a Chinese company since 2014, when e-commerce giant Alibaba raised $25bn (£15bn).

Didi has a mobile app, where users can hail taxis, privately owned cars, car pool and buses in some cities.

It also has businesses interests in electric vehicle charging networks, fleet management, car making and autonomous driving. It has expanded into 15 countries, but China remains its biggest market.

Didi did reveal slower revenue growth as a result of the Covid-19 pandemic in its filing, 9% lower than the previous year. However, as China opened up, the company has recovered strongly.

Revenue more than doubled between January and March, compared to the same period last year.

Ride-hailing giant Uber also has a stake - owning 12.8% of shares - after it retreated from China in 2016, selling its ride-hailing business there to Didi.

Didi however, has also had its share of controversies. In its filing, it mentioned two cases that caused a public outcry in China.

In May 2018, A 21-year-old woman was killed in Zhengzhou after using Didi s Hitch service, which pairs up commuters heading in the same direction.

Then in August, a 20-year-old woman was raped and murdered in Wenzhou while using the ride-hailing service.

The founders of Didi called the cases the company s "darkest moment".

The company said that they had suspended the carpooling service for more than a year to improve protection for riders and drivers in the filing.

Didi is the latest Asian tech giant to court Wall Street for investment.

Earlier this year, Singapore s biggest ride-hailing app Grab struck a $40 billion deal through a special-purpose acquisition company (Spac) to go public in the United States.

Spacs are set up with the purpose of buying a private firm to merge with and then take public on the stock market.

Chinese companies raised $12 billion from US listings last year, more than triple the amount raised in 2019, according to financial market data company Refinitiv.
Read more on bbc.com
News Topics :
Similar Articles :
Technology
seemingly left the Chinese ride hailing giant as the last man standing and therefore sole winner of China’s vast ride sharing market. However, Didi’s success has also served to open new opportunities for other competitors....
Business
The chief executive of Uber Technologies Inc said the company is burning through more than a billion dollars a year in China, where it is locked in a fierce battle...
Business
Apple will become a strategic investor alongside Chinese e commerce giant Alibaba Group and Tencent Holdings Ltd., an online games and entertainment service, Didi Chuxing announced Friday. China s ride hailing...
Business
A taxi driver waits at a newly installed Didi Station, a road side stop for taxis booked by the Chinese car hailing app Didi Kuaidi, which has since changed its name to Didi...
Technology
The multi purpose fund will be used to reduce fees for passengers going to vaccination appointments and frontline healthcare workers traveling to vaccination locations. It will also sponsor future measures based...