Everything is bigger in China. Yesterday Didi Chuxing filed to go public in the US, giving us an insight into just how big the "Uber of China" really is.
Its filings reveal 2020 revenue of almost Rmb142bn, which is equivalent to $21.6bn. That is almost twice what Uber pulled in last year, and roughly 9x that of Lyft, which is America's second-largest ride-hailing app.
Coming to America
The decision to file for an IPO in the US is a path that many successful Chinese companies have taken — and it's one that makes a lot of sense.
The US stock market is still, by far, the largest in the world, and remains home to many of the biggest tech companies in the world. In short, listing in the US gives Didi Chuxing a better chance of raising a lot of investment at more favourable terms. Reuters is reporting that Didi could raise around $10bn in fresh capital to help it grow.
That cash is something that even Didi needs. We've discussed before how Uber has been, and continues to be, an unprofitable business. Didi Chuxing is apparently not so different — spending $23.7bn last year, which meant a net loss from operations of $2bn and change. Even at such an enormous scale ride-hailing, it seems, is still not profitable.
