The parade of lists of platform companies and digital disruptors targeting and streamlining day-to-day operations continues. To this end, Didi Chuxing Technology Co. filed his F-1 (under its official name, Xiaoju Kuaizhi Inc.) with the SEC to go public in the United States, with shares of US custodian.

Digging through the file, data shows that in the last 12 months that ended in March 2021, the company had 493 million annual active users, with 15 million annual active drivers and 41 million average daily transactions. during the same period.

Management said in the dossier that “the new mobility paradigm is expected to dramatically increase the already massive opportunity in the mobility market.” Mobility, according to the file, represents a $ 6.7 trillion opportunity, where the share of mobility and electric vehicle penetration, respectively, is just 2% and 1%. Along with this low penetration, the global mobility market is expected to reach $ 16.4 trillion by 2040, and shared mobility is expected to account for nearly 24% of the total.

“We believe that China is the best starting point to realize our vision of mobility,” Didi said in the dossier. “China’s massive and urban population presents opportunities for new mobility services. This will accelerate the rapid development of shared mobility and transform urban life.

The company said that for the full year of 2020, Didi achieved sales of 141.7 billion Chinese yuan, down 8.5% from the previous year. The drop is not a surprise in the wake of the pandemic. Consolidated sales represent the US equivalent of $ 20.4 billion in revenue. Uber, for comparison, recorded $ 11.1 billion in sales, down 14.6% year on year. For 2020, Didi said he lost 13.7 billion yuan, which translates to a loss of 2.1 billion dollars. Uber lost $ 4.9 billion from operations over the same period.

Slight (net) profit

But when it comes to first quarter results, the operating loss narrowed to $ 1 billion (USD), as sales grew more than 100% year-over-year. The company posted a net profit of 196 million yuan in the last period (the equivalent of $ 30 million). Did said in his file that more than 93% of his platform’s sales come from China.

There are significant contrasts between Didi and Uber (which owns a 12.8% stake in Didi). While Uber has grown its platform into a range of adjacent and cross-pollinated services with carpooling (eg freight) – and although they both have food delivery deals (food delivery from Didi is a hallmark of international sales) – Didi seems focused on mobility and its home market in China.

The company notes that “the digitization of China’s intra-city freight industry is still in its infancy.” Intra-city freight stood at $ 161 billion in 2020, the company said, and the online platform’s penetration rate was only 4.9 percent. There is also a huge opportunity for fresh food and groceries (a $ 1.8 trillion industry) to move online in China. “In 2020, only 20.9% of total spending on fresh food and groceries was made online,” the company said, a tally that is expected to rise to over 45% by 2025.

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About the study: The AI ​​In Focus: The Bank Technology Roadmap is a research and interview report examining how banks are using artificial intelligence and other advanced IT systems to improve credit risk management and other aspects of their operations. The Playbook is based on a survey of 100 banking executives and is part of a larger series assessing the potential of AI in finance, healthcare and others.

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