Didi the Uber-slayer set for the world’s biggest initial public offering

Business & Technology

Didi Chuxing, the home-grown car-hailing company that ate Uber alive in China, is planning what could be the world’s biggest ever share sale.

cheng wei, the CEO of Didi Chuxing, in front of an image of cars in a parking lot
Didi Chuxing CEO Chéng Wéi 程维 at a product launch event in Beijing, November, 2020. REUTERS/Yilei Sun

Didi Chuxing, China’s ride-hailing giant, has filed to list in the U.S. in what will be the world’s biggest initial public offering this year, that could raise around $10 billion at a valuation of around $100 billion.

  • The Beijing-based firm was founded in 2012, and bought Uber’s China operations in 2016 in exchange for a 12.8% equity stake.
  • Other major shareholders are Softbank (21.5%) and Tencent (6.8%).
  • Didi now has nearly 500 million users in more than 4,000 cities across 15 countries.
  • Didi says it would use 30% of its IPO proceeds to expand its overseas businesses and another 30% to upgrade its electric and autonomous driving tech.

More than 94% of Didi’s money is made in China. In 2020, the company posted $22.2 billion in revenue. Uber’s 2020 sales were $11.1 billion, but, as the Wall Street Journal points out, Didi “includes drivers’ earnings in its revenue, while Uber and Lyft only include their cut.”

  • The WSJ also notes that Didi’s market dominance in China is a risk, especially given the ongoing government “moves to increase antitrust scrutiny of its technology companies.”

Didi’s key people are:

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