Didi Global Reports Fourth-Quarter Profit Amid Regulatory Recovery

Didi Global Reports Fourth-Quarter Profit Amid Regulatory Recovery

Key Points:

  • Didi Global reports a fourth-quarter profit, marking a significant turnaround from previous losses. Revenues for the quarter surged by 55.4 percent.
  • Regulatory scrutiny in 2021, including $1.2 billion in fines and app removals for data security violations, challenged Didi’s operations.
  • The company began to recover from regulatory challenges in early 2023 after receiving permission to relaunch its apps.
  • A one-time expenditure in November related to compensating users for service disruption impacted Didi’s fourth-quarter net profit.

Didi Global, China’s largest ride-hailing company, has signaled a positive turn in its fortunes by reporting a fourth-quarter profit, indicating a gradual recovery from regulatory challenges that plagued the company in recent years.

In the three months ending December 31, Didi Global reported a net income attributable to shareholders of 818 million yuan (Approximately $115 million), marking a significant turnaround from a loss of 953 million yuan (Approximately $133 million) in the same period a year ago. The company also witnessed a substantial revenue increase, which surged by 55.4 percent to reach 49.4 billion yuan (Approximately $6.9 billion) for the quarter.

Throughout 2021, Didi faced intense regulatory scrutiny in China, particularly from the cyberspace regulator, over its attempt to pursue a US initial public offering without proper approval. This regulatory inquiry resulted in restrictions on user acquisition and removing Didi’s apps from major app stores. In July 2022, the company was fined $1.2 billion for data security violations.

Despite these setbacks, Didi Global began to recover from its regulatory challenges in early 2023 after receiving permission to relaunch its apps, signaling a positive trajectory for the company’s operations.

However, Didi’s fourth-quarter net profit was impacted by a significant one-time expenditure in November, attributed to compensating users for a glitch that disrupted its ride-hailing app for several hours. As a gesture of apology for the inconvenience caused, the company distributed millions of coupons valued at 10 yuan (US$1.40) each to affected customers.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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