Didi Global Faces Loss Amidst Revenue Growth
Didi Global reported a second-quarter net loss of 2.5 billion yuan, mainly due to a provision for a shareholder lawsuit, despite a 10.9% rise in revenue bolstered by international market growth. Competition intensifies as companies like Alibaba and Meituan integrate ride-hailing into their super-apps.
On Thursday, Chinese ride-hailing giant Didi Global disclosed a second-quarter net loss of 2.5 billion yuan ($350 million), attributed to a one-off legal provision, while reporting a revenue increase of 10.9% driven partly by overseas expansion.
The financial setback stemmed primarily from a 5.3 billion yuan provision for a shareholder lawsuit, alongside increased marketing expenditures amid intensifying domestic competition. Despite its leading market presence in China, Didi faces growing pressure from industry rivals.
Competitors such as Alibaba and Meituan have integrated ride-hailing into broader digital platforms, appealing to users who favor all-in-one applications. While Didi's international operations remain a smaller part of its portfolio, they experienced notable growth of 28% in the second quarter. Didi's pursuit of business expansion in 2023 marks a resurgence following a regulatory clampdown initiated after an unauthorized U.S. IPO in 2021.
(With inputs from agencies.)
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