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

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:

• CEO William Cheng Wei (程维 Chéng Wéi)
• President Jean Liu (柳青 Liǔ Qīng)
• CEO of international business Stephen Zhu (朱景士 Zhū Jǐngshì)