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Chinese ride-hailing giant Didi narrows losses in first quarter on back of improved demand as domestic competition heats up
- Didi recorded a net loss of US$166 million in the first quarter, a significant improvement from its US$2.3 billion loss in the same period last year
- Revenue reached US$5.9 billion, up from 35.8 billion yuan a year earlier, driven by a rapid recovery in daily transactions
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Chinese ride-hailing giant Didi Global has substantially narrowed its losses in the first quarter on the back of improved demand, several months after regulators slapped it with an 8.026 billion (US$1.2 billion) fine for data violations and amid increased domestic competition.
Didi recorded a net loss of 1.2 billion yuan in the first three months of this year, a 93 per cent improvement from its 16.3 billion yuan loss in the same period in 2022, the Beijing-based company reported on Sunday.
First-quarter revenue reached 42.7 billion yuan, up 19.1 per cent from 35.8 billion yuan a year earlier, driven by a rapid recovery in daily transactions after a period of lacklustre demand during the Lunar New Year holiday in January.
Operations on the mainland, which account for Didi’s primary revenue source, increased 18.7 per cent year on year to 39 billion yuan, while the company’s international business grew 40.7 per cent to 1.7 billion yuan.
Didi’s adjusted Ebitda – earnings before interest, taxes, depreciation and amortisation – for its domestic operations showed a gain of 1 billion yuan, compared to a 6.2 billion yuan loss in the first quarter last year, which was the period when it booked the hefty fine for data violations imposed by internet regulator the Cyberspace Administration of China (CAC). The fine was announced publicly last July.
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