What is Didi’s stock price, and are they publicly traded? Didi went public on the NYSE in June of 2021. However, they’ve been delisted and now trade OTC. Rideshare companies have been on the rise for quite some time. Uber (NYSE: UBER) and Lyft (NASDAQ: LYFT) have done fairly well on the market, which is tempting to other companies looking to go public. How would it hurt Uber or Lyft? Or is there room on the market for more rideshare stocks?
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Didi Stock (DIDIY) Stock Introduction
There was talk of a Didi IPO making its way to the US stock exchanges. This is a Chinese rideshare company. And they decided to IPO on the Hong Kong Stock Exchange first instead of the US Stock Exchange—Didi stock IPOd in June of 2021 under the ticker DIDI. They were investigated by multiple agencies, including the SEC, and have since been delisted and now traded on the OTC market. As a result, you don’t find Didi stock on regular exchanges.
Didi Stock IPO Could Have Hurt Uber
According to several recent reports, China’s leading ride-hailing firm, Didi Chuxing, planned to enter Europe. The company tried to reach lucrative markets like Europe before its highly anticipated initial public offering (IPO). They planned to introduce its ride-sharing service in Germany, France, and the U.K.
Didi has already nominated a team that’ll manage its European operations. Moreover, they’ve commenced local hiring to support future regional operations with plans to start additional services. For example, food delivery depends on demand.
Shares of established rivals in the ride-sharing industry declined following the news of a Didi stock price. Uber stock plummeted for two straight days, diving more than 8%. At the same time, Germany’s Delivery Hero SE fell nearly 4%.
Didi is already the number 1 ride-sharing service in China. Now, it’s stepping into new territories to fuel its growth momentum and take on Uber. Goldman Sachs expects the ride-hailing market to grow eight-fold to $285 billion by 2030. The latest expansion reports suggest Didi wants to capitalize fully on the booming market.
Didi ousted Uber from China in 2016 by acquiring its Chinese unit. In return, it offered Uber a stake of 17.7 percent to end a costly battle with the San Francisco-based company, besides gaining a complete hold of China’s ride-sharing market.
Didi currently operates in 15 countries outside China. However, entering and operating in Europe won’t be easy for the company. Several regulatory challenges are expected there. For instance, Britain’s highest court recently announced a verdict saying Uber drivers are eligible for worker’s benefits like paid leave and minimum wage. Didi could face similar challenges while moving forward with its plan to enter European countries. Such obstructions could hurt its operating margins.
Didi Stock IPO
Is there a Didi IPO yet? Yes. Beijing-based Didi went public on June 30, 2021, achieving a valuation of $70 billion. They listed their shares on the New York Stock Exchange (NYSE). However, uncertain relations and increasing trade tensions between the U.S. and China initially forced the company to choose Hong Kong over the NYSE.
However, the NYSE listed the company mainly due to more capital funding opportunities. As well as the presence of peers such as Uber and Lyft. Didi is currently discussing with investment banks, including JPMorgan and Goldman Sachs, for its IPO. As a result, we saw a Didi stock price.
The company has raised billions of Chinese yuan since its inception in 2012. Some notable companies back it. For example, e-commerce giant Alibaba, tech giant Tencent Holdings, and Japanese conglomerate Softbank Group.
Separately, Didi raised $300 million for its self-driving unit last month, on top of more than $500 million it raised last summer. The company started developing and testing autonomous vehicles in 2016. It has an open-road testing license for Beijing, Shanghai, and California.
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Brief Recap of Didi’s Journey
Didi’s history dates back to 2012 when Cheng Wei, a former sales manager at Alibaba, started an online service that allowed people to book taxis through their smartphones. The company, backed by Tencent, competed primarily in the market against Alibaba-backed Kuaidi Dache.
Both Didi and Kuaidi tried to dominate the Chinese ride-hailing market by offering subsidies to drivers and heavy discounts to customers. In 2013, Kuaidi revealed a $100 million round backed by Alibaba and affiliates. A year later, Didi disclosed a $100 million investment from Tencent and others.
Nevertheless, Tencent-backed Didi and Alibaba-backed Kuaidi announced a $6 billion merger in 2015, and as a result, a joint entity called Didi Chuxing was formed. The merger also ended an intense war between the two leading players in the ride-sharing space.
Meanwhile, Uber also stepped into China, considering the rapidly growing ride-hailing market in the country. In 2014, Uber officially rolled out its standard UberX service in Shanghai and later expanded its services to other cities. However, Uber failed to catch up with Didi in the following two years, burning significant money. Finally, Uber stepped back from the region by selling its China operations to Didi in 2016.
Since then, Didi has been dominating the Chinese ride-sharing market. Didi reportedly earned a profit of more than $1 billion in 2020 despite the difficult operating environment due to the COVID-19 pandemic.
On the other hand, Uber has been losing money lately, mainly due to the pandemic-driven lockdowns weighing on its revenue and partly due to its aggressive expansion strategy.
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Is Didi Stock Owned by Uber?
Uber owns a 15.4% stake in Didi. So, if we see a Didi stock price coming soon, that could benefit Uber. They used to own a larger stake, but it was diluted because of new investments. However, given how things work, a Didi IPO on the US stock exchange may impact Uber’s take on their company.
Uber Performance in Recent Months
The demand for ride-sharing services stayed low during the pandemic. Uber also struggled to boost revenue during 2020 amid mobility restrictions imposed in different parts of the world. However, the company couldn’t profit even before the pandemic for several reasons.
One of those reasons was the idea of introducing autonomous car technology. The company had to burn massive amounts of cash while chasing that goal. In December, they finally backed out from the endeavor when it announced the sale of its autonomous vehicle operations to San Francisco-based startup Aurora Innovations. The deal marked the end of the company’s ambitious target of introducing robot-powered taxis.
Meanwhile, Uber again faced heavy criticism after reports surfaced that it’s discouraging drivers from seeking minimum wage payments by the latest court ruling in the U.K. The company is expected to incur millions in payments from a court verdict last week.
However, there are some areas where the company did extremely well in recent months. For instance, its delivery business jumped more than threefold in the fourth quarter. To some extent, it helped the company to balance the negative impact of the COVID-19 pandemic on its overall business.
Didi ($DIDIY) Stock Rover Research Report 3/24
Uber’s Latest Financial Performance
Uber announced its financial results for the fourth quarter. Despite competition from other rideshare companies, Uber is still plugging along.
Revenue for the fourth quarter came in at $9.3 billion. This was a second straight quarterly profit.
The pandemic hurt Uber with the lockdown. But they’ve been able to be positively consistent lately when other companies are having layoffs.
Final Thoughts: Didi Stock Price
Didi stock trades on the OTC market. If you don’t trade OTC stocks, that doesn’t mean you can’t take advantage of other ride-sharing stocks. However, if you trade $DIDY, ensure you have a strong knowledge of technical analysis and price action since the OTC market is unregulated.
Frequently Asked Questions
Analysts want to see $DIDY increase to an average price of $4.81. It's currently trading in the $ 3s.
DiDi was officially delisted from the New York Stock Exchange (NYSE) on June 13th, 2022, and commenced trading on the OTC market under the ticker “DIGIY.”
Didi currently has a market cap of $16.91 billion. It has decreased since it's 2021 IPO.
DiDiChuxing and Uber are both ride-hailing companies. In fact, DiDi acquired Uber’s China operations in 2016. As a result, Uber is no longer operating in China. In contrast, DiDi is not operating in the United States.
47 different investors back Didi. The latest investors of Didi are Goldman Sachs & JP Morgan Chase.
