Abstract: This article sorts out some of Didi Chuxing’s IPO information as well as includes other information on business overview, development history, shareholder composition, development strategies, etc.
Didi Chuxing was officially listed on the New York Stock Exchange on June 30, 2021. The U.S. stock ticker is DIDI, and the issue price is US$14. A total of 317 million ADSs have been issued. The market price is valued at more than US$67 billion using the IPO issue price, of which the ADS only accounts for about 6.6%.
Among the funds raised, 30% will be used to expand business in international markets outside of China, 30% will be used to improve technical capabilities including shared mobility, electric vehicles and autonomous driving, and 20% will be used to launch new products and expand existing product categories for continuous improvement of user experience, while the rest is used for working capital and strategic investment.
Star underwriters of Didi IPO
Goldman Sachs, Morgan Stanley, JP Morgan Chase and China Renaissance Capital acted as lead underwriters. In addition, there are also many Chinese-funded institutions, including: CICC, BOC International, Bank of Communications International, CCB International, CMB International, ICBC International and Guotai Junan International etc.
Composition of shareholders
Among the top shareholders of Didi, SoftBank’s Vision Fund holds 21.5%, Uber holds 12.8%, Didi’s chairman Cheng Wei who is also the founder and CEO holds 7%, and Tencent holds 6.8%. Followed by Alibaba, Boyu Capital and Apple Inc.
Among Didi’s voting shares, SoftBank, Uber and Tencent all hold the same proportion of voting rights as the shareholding proportion, while Cheng Wei holds 15.4%.
As of the end of March 2021, there were 490 million annual active users and 15 million active drivers worldwide, of which there were 377 million annual active users and 13 million annual active drivers in China. In the first quarter of 2021, Didi has 156 million monthly active users and an average daily transaction volume of 25 million in China. In the previous 12 months of the end of March 2021, Didi’s global average daily transaction volume was 41 million orders, and the total transaction volume on the entire platform was 341 billion yuan (RMB, the same for the following, unless otherwise specified).
Didi has 15,914 full-time employees worldwide, of which 7,110 are R&D employees, accounting for 44.7%.
In terms of revenue, business in China, international business and other businesses accounted for 133.6 billion yuan, 2.3 billion yuan and 5.8 billion yuan, respectively. Among them, the platform revenue for both the business in China and international business are 18.7 billion yuan, 24.2 billion yuan and 34.7 billion yuan in 2018, 2019 and 2020, respectively, with an average annual compound growth rate of 36%. Of the platform revenue from 2020 to March 2021, China accounted for 93.4% and international accounted for 6.6%.
In 2020, revenue was 141.7 billion yuan, and there was no profit in 8 years since company establishment. Last year, the net loss was US$1.6 billion. However, in the first quarter of 2021, Didi turned losses into profits, with a net profit of 5.4 billion yuan and operating income of 42.16 billion yuan, mainly due to investment income.
It operates in more than 4,000 cities and towns in 15 countries, including China, and provides services such as online taxis, ride-hailing, shared bicycles, shared motorcycles, agent driving, car service, freight, finance, and autonomous driving. The four “core strategic sectors” are shared travel platforms, car service networks, electric vehicles and autonomous driving.
In 2012, Didi was established in China and received early angel round financing including Alibaba executive Wang Gang and others.
At the end of 2012, it obtained the A round of financing from Jinshajiang Venture Capital.
In 2015, Didi and Kuaidi Dache announced a merger and share swap after a money-burning battle, and became Didi Kuaidi, which was later renamed Didi Chuxing.
In 2015, in order to fight Uber, Didi invested US$100 million in its U.S. rival Lyft.
In 2016, Didi announced a partnership with Lyft, which is convenient for Didi users to call Lyft in the United States.
In 2016, Apple invested 1 billion U.S. dollars in Didi, becoming the largest single funding institution in the financing at that time.
In August 2016, Didi acquired Uber’s China business through a share swap and mutually held shares with Uber. Uber holds a 5.8% stake in Didi, while Didi invested US$1 billion in Uber, accounting for 1.5% of the shares. But for now, Didi has sold all its shares in Uber.
In 2018, Didi Chuxing hosted the Little Blue Bicycle at the time, and launched its own bike-sharing brand “Didi Bike” in the same year.
In January 2018, Didi’s “Xiaoju Charging Pile” was officially opened for use.
On April 24, 2018, in the banquet hall of the China World Trade Center Marriott Hotel, many people at the helm of the Chinese automobile industry gathered here, including: BYD Chairman Wang Chuanfu, FAW Group Chairman Xu Liuping, Nio Founder Li Bin, and Li Auto Founder Li Xiang. Cheng Wei announced the formation of the “D-Alliance” that day and explained the meaning of it on the spot.
In 2019, Didi announced a total loss of US$39 billion in 6 years.
In November 2019, Didi and BYD jointly established a vehicle technology company.
In June 2020, Didi Autonomous Driving, a subsidiary of Didi, announced its cooperation with BAIC Group.
In November 2020, Didi Travel held the “Didi Open Day” and officially released the world’s first customized ride-hailing car D1, which is a cooperation with BYD.
According to the prospectus, nearly 1,000 D1s are currently in operation. Didi also plans to launch new models of electric vehicles to actively expand its use of electric vehicles. According to Cheng Wei’s plan, Didi’s customized ride-hailing car will continue to iterate. By 2025, the customized ride-hailing car D3 will be popularized on the Didi platform by more than 1 million units. Didi hopes to build exclusive vehicles in the field of ride-hailing through cooperation with BYD. At present, there is no vehicle specifically suitable for ride-hailing operations in the world. Didi hopes to build such a car that will make it safer, more comfortable and more convenient for users to book a ride-hailing car online.
Charging pile business
According to Lin Zhitang, general manager of Didi Chuxing Energy department, Xiaoju Charging was officially opened for use in January 2018. As of October 2019, Xiaoju Charging has cooperated with nearly 500 partners and connected more than 20,000 fast charging piles. Covering nearly 60 core cities across the country. In 2019, the number of pure electric vehicles registered on the Didi platform reached 969,000, accounting for more than 30% of the total number of pure electric vehicles in the country. The supply side of Xiaoju Charging includes: large charging operators, charging pile hardware manufacturers, small and medium charging stations and various real estate companies, etc.; while the demand side includes Didi ride-hailing car owners and large-scale enterprise fleets such as logistics fleets. , Airport buses, operating vehicles, etc., as well as private car owners.
Advantages of Xiaoju Energy:
- The charging heat map provided by the big data of the Didi Travel platform can provide partners with the calculation of the demand satisfaction ratio, so as to guide the supply-side layout more scientifically and adjust the energy supply and demand structure in an orderly manner.
- Regard charging demand as the entrance, with charging supporting facilities to optimize the charging experience.
At present, the average utilization rate of the general charging pile market is about 3% to 5%, and the average utilization rate of charging piles on the Xiaoju platform is more than 30%, up to 50%. This relatively high utilization rate comes from more refined site selection and operations.
Xiaoju Charging, as a way for Didi Group to provide energy for car owners, will not only supply electricity for online car-hailing charging, but will also be open to more private cars, including large fleets. This is to let other non-Didi related cars also enjoy this kind of service and network.
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