Didi IPO filing shows rebound from pandemic lows

There is a parade of lists from platform companies, and a digital disruptor that streamlines for everyday activities. To that end, Didi Chuxing Technology Co. I submitted that F-1 (Official name is Xiaoju Kuaizhi Inc.) Published in the United States using American Depositary Receipts with the SEC.

A closer look at the filing shows that in the last 12 months, which ended in March 2021, the company had 439 million annual active users, 15 million annual active drivers, and an average daily transaction count during the same period. Was 41 million people.

“The new mobility paradigm is already expected to significantly increase opportunities in the large mobility market,” management said in a filing. According to Filing, mobility represents $ 6.7 trillion in opportunities, with share mobility and electric vehicle penetration rates of only 2% and 1%, respectively. In addition to its low penetration, the global mobility market is expected to grow to $ 16.4 trillion by 2040, with shared mobility expected to be nearly 24% of the total.

“We believe China is the best starting point for realizing our vision of mobility.” Didi Said in the filing. “China’s large and urbanized population offers new mobility service opportunities, which will accelerate the rapid development of shared mobility and transform urban life.”

According to the company, full-year sales in 2020 were 141.7 billion yuan, down 8.5% from the previous year. The decline after the pandemic is not surprising. The consolidated top line represents $ 20.4 billion in revenue in the United States.For comparison, Uber With sales of $ 11.1 billion 14.6% decrease from the previous year. Diddy said he lost 13.7 billion yuan in 2020, which is equivalent to a loss of $ 2.1 billion. Uber lost $ 4.9 billion in business losses over the same period.

Slight (net) profit

However, looking at the results for the first quarter, operating losses shrank to $ 1 billion (USD) as sales increased by more than 100% year-on-year. The company posted a net profit of 196 million yuan (equivalent to $ 30 million) in the most recent period. In the filing, he said that more than 93% of platform sales come from China.

There is a big difference between Didi and Uber, which owns a 12.8% stake in Didi. Uber has built a platform for a variety of cross-polination services adjacent to ride hailing (such as freight), both of which offer food delivery services (Didi’s food delivery is internationally sold). Features)) — Didi seems to be focused on mobility and its home-based market, China.

“The digitization of China’s urban freight industry is still in its infancy,” the company said. According to the company, urban freight in 2020 was $ 161 billion, with an online platform penetration of only 4.9%. There is also a great opportunity for fresh food and groceries ($ 1.8 trillion industry) to go online in China. “By 2020, only 20.9% of total fresh food and grocery spending was traded online,” the company said, which is expected to grow to more than 45% by 2025.

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https://www./news/ipo/2021/didi-ipo-filing-shows-rebound-mobility-market-potential/ Didi IPO filing shows rebound from pandemic lows

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