Uber and Lyft were some of the hottest companies and startups coming out of the US in the last decade, they were also some of the most anticipated IPOs. For example, with Uber’s IPO, the stock began trading at $42 per share on the New York Stock Exchange on May 10th, 2019. The IPO raked in $8.1 billion, putting the company’s valuation at around $75 billion. Yesterday, a new company similar to Uber and Lyft made its IPO. The company is called DiDi and is a Chinese version of Uber. DiDi is the undisputed market leader and is estimated to control 90% or more of the market share of the country’s ride-hailing service segment.
DiDi acquired so much market share through many mergers and acquisitions, for example, they absorbed competitors in the market such as Kuaidi Dache and Uber China. DiDi’s IPO occurred yesterday and ended with the stock up 1%, a different trend than what occurred with the company’s American counterparts (Uber and Lyft) which both closed below their initial trade values. With increasing vaccines and a decrease in COVID in China and the US — DiDi’s IPO comes at a good time for the company relative to what the last year had looked like. The numbers verify this trend with DiDi reporting a total loss of $2.54 billion in revenue last year, but finally seeing a slight profit of $95 million in the first quarter of 2021. What do you think about the IPO, and will you be investing?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.