(Bloomberg) — Didi Global Inc. reported a massive $4.7 billion net loss for the quarter ended September as it navigates toward delisting its shares in the U.S. and offering them up in Hong Kong.
The ride-hailing giant has been a focus of a broader Beijing crackdown on big tech. Regulators demanded that the company withdraw from trading in the U.S. over fears its vast troves of data could be exposed to foreign powers. The company reported $6.6 billion in revenue in its unaudited third-quarter results, down from $7.6 billion (48.2 billion yuan) in the previous three months.
Didi’s app was removed from Chinese app stores in early July, shortly after its initial public offering in the U.S., when China’s cybersecurity regulator said an investigation had uncovered problems with the way it collects and uses personal information. The company’s spending may have risen during the quarter in order to comply with the increased scrutiny from Beijing around the way it governs its drivers and data. Worker rights protections for drivers were formalized into a set of guidelines from Chinese regulators in November.
Didi’s Brief U.S. Foray Is Ending. What Happens Next?
The Beijing-based company reiterated its plan to list on the Hong Kong Stock Exchange and ensure that its American depositary shares can be swapped for “freely tradable shares of the company on another internationally recognized stock exchange at the election of ADS holders.” It will organize a shareholder meeting and vote on the matter, Didi said in its earnings report.
More stories like this are available on bloomberg.com
©2021 Bloomberg L.P.
