Didi posts Q2 loss of 2.5 billion yuan on lawsuit provision, despite revenue growth

Chinese ride-hailing giant Didi Global reported on Thursday a second-quarter net loss of 2.5 billion yuan (HK$2.73 billion), driven by a one-off charge, even as revenue rose 10.9 percent, partly fuelled by growth in overseas business.

The loss was largely due to a provision of 5.3 billion yuan for a previously disclosed shareholder lawsuit, while spending on marketing and other expense also increased, reflecting intensifying domestic competition.

Didi maintains its dominant position in China's ride-hailing sector, but pressure from rivals is mounting.

Companies such as Alibaba (9988) and Meituan (3690) have integrated ride-hailing services into broader digital offerings, attracting users who prefer consolidated super-apps.

These platforms operate as aggregators, linking passengers with ride-hailing providers, including smaller regional operators.

Revenue rose to 56.4 billion yuan from 50.9 billion yuan a year earlier.

The overseas business, while still a small portion of overall revenue, has grown rapidly, including growth of 28 percent in the second quarter.

Didi returned to business expansion early in 2023 following a regulatory crackdown begun in 2021 after the company pursued a US initial public offering without Beijing's approval.

Reuters