Didi Chuxing Technology Co. is China’s largest ride sharing platform and a major rival to the better known Uber Technologies. Didi states that they provide service to over 450 Million users with an average of 30 Million rides every day. Their gross merchandise volume grew 62%, from USD 5.4 Billion in April to USD 8.76 Billion in August. The Company was founded in 2012 is currently worth USD 56 Billion, hoping to increase to USD 70 Billion to USD 80 Billion after it goes public. This makes Didi’s upcoming IPO one of the largest in the recent years, and the largest technology IPO ever. Didi has not commented on exactly when and where the listing will happen.
Although Uber and Didi are competitors overseas, in China, they are partners after Didi overtook Uber in the fight for China’s ride sharing market. Uber then invested a 20% stake in Didi’s China division followed by Didi investing USD 1 Billion in Uber. Overseas, there is still competition between the two rivals following Didi’s expansion into Latin America. Didi bought a USD 600 Million majority stake in Brazil’s major ride sharing service, 99. Didi also began service in Mexico in April. The Chinese Company also has partnerships with other ride sharing companies such as Lyft Inc. and Grab Inc.
The auto-services sector that Didi is planning to invest USD 1 Billion in is currently worth around USD 2 Billion to USD 3 Billion and Didi is planning to spin it off before the IPO. That sector is currently known as Xiaoju Automobile Solution Co. and deals with business including vehicle leasing, refueling, insurance, car maintenance and more. Although it has not spun out from the main Didi business, it has been given more autonomy with a separate General Manager.