Home / Business / Didi, the ride-hailing giant, wants to be more than China’s Uber.

Didi, the ride-hailing giant, wants to be more than China’s Uber.

A user opens the Didi Chuxing smartphone app in Shanghai, China, on September 18, 2020.

Qilai Shen | Bloomberg |bergGetty Images

BEIJING — Didi Chuxing, the Chinese version of Uber. are trying to use car travel as a means of everyday life in many areas, from shopping to finance.

Didi filed on Thursday to list it in New York in what many expect could be the world̵

7;s largest initial public offering this year. Founded in 2012, the company is among the world’s top five private startups and counts SoftBank, Uber and Tencent as its major investors.

Smartphone ride-hailing in China remains Didi’s core business, generating $20.4 billion in revenue last year. Among the total net loss of $1.62 billion. According to the prospectus, when Didi turned a profit in the first quarter of this year revenue share of “Other initiatives” rose to 5% from 4% for all of 2020, up from 1.2% in 2018.

A quick look at Didi’s smartphone app reveals more products. related to bike sharing mobile car personal finance and gas station An array of icons similar to those of Alibaba’s subsidiary Alipay, the app is not just a mobile payment platform. But it also allows users to book plane tickets and pay utility bills. Similarly, Grab-hailing, the ride-hailing app in Southeast Asia. It serves food and wants to be a regional leader in mobile payments.

Eight car services

Didi is the main app for getting rides in China. Although there are other players coming, including apps focused on high-end cars (Shouqi) or new energy vehicles (Cao Cao).

Users can choose from eight Didi options. From ride-sharing services to luxury car services, Didi also allows users to call taxis through their app. and operates a chauffeur business that entrusts vehicle owners who may be overly alcoholic or unable to drive their own vehicles for other reasons. These temporary riders can travel between assignments on folding bikes.

The company said it had 377 million annual users and 13 million annual active drivers in China in the 12 months ended March 31. Didi said it made 133.64 billion yuan ($20.88 billion) in revenue. in the “China movement” category last year.

This includes other Didi services such as e-bikes and transportation costs, customer costs for different product categories. It can start from 15 cents to more than 100 dollars, the prospectus said.

building a financial arm

Didi said in the prospectus that motorcycle and e-bike sharing contributed 5.76 billion yuan in total revenue from The most “other initiatives” in the last year. Other businesses in this category include city freight. car rental Buying a Community Group and financial services

The company said in August that financial technology arm Didi Finance – which is not mentioned in its prospectus – announced a partnership with Bank of Shanghai for consumer finance and other digital financial products.

Didi has also partnered with China Merchants Bank to support credit card application through ride-hailing apps and offer car installment plans. Didi’s subsidiary works with Ping An Insurance to sell financial products and leases. as well as insurance

While more than 600,000 cars are rented out, about half of the startups are owned by about 3,000 rental partners, reducing the number. The assets that Didi is responsible for, the prospectus states.

Basically, Didi recently promoted its own mobile payment system to some users in Beijing, setting it up as their default payment option with a discount. Users have to manually select other options such as WeChat pay, after which the discount will be removed.

Didi’s ride-hailing app also works with international credit cards. The company operates in 15 countries, including Brazil, Mexico and Japan.

electric bet

Many analysts expect self-driving cars and shared cars to become the main modes of transportation in the future. More than owning a personal car

Didi has invested in its own self-driving unit, which launched its “robotaxis” segment in Shanghai in June 2020. The ride-hailing company announced in November that it was co-developing an electric vehicle with BYD, the D1, which will be launched at the big company. China a month later

in May The self-driving unit and the state-sponsored GAC Aion New Energy Automobile Agreed to work on mass production of all self-driving new energy vehicles.

Didi claims to have the largest electric vehicle charging network in China. from self research

Data privacy and other risks

Didi’s New York IPO Plans Rise on U.S. Tensions and China in recent years. The ride-hailing giant spent nearly three pages of its prospectus discussing the risks of a withdrawal from failing to meet U.S. government audit requirements.

The Chinese government’s increased scrutiny of tech companies on monopoly practices and general scrutiny of data privacy regulations also poses a risk that Didi was named in the prospectus.

In 2018 Didi was attacked by Chinese social media users. which demands to delete this app After a woman was accused of rape and murder by a driver, Didi announced that she would record the audio during a car trip. which will be deleted after seven days

Didi didn’t specifically mention this feature in the prospectus.

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