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Why can’t Didi go public?

1. Didi’s current need for new funds is no longer so urgent. In other words, Didi is not short of money now, not only that, but also very rich. According to data, Didi’s most recent financing was in December 2017, with a financing scale of over US$4 billion. Looking at the comprehensive development history of Didi, Didi has completed eight rounds of financing since its establishment, with a scale of more than 20 billion US dollars.

Excluding the cash consumed by Didi during the subsidy war with Kuaidi and Uber, as well as Didi’s investment in overseas layout in recent years, such as investing US$100 million in Lyft in the United States, as for Southeast Asia The amount of investment in online ride-hailing companies such as Grab, India's Ola, and Brazil's 99Taxi has not been announced.

2. Meituan warned Didi that it cannot land yet. Meituan, Yidao, etc. have launched challenges to Didi in the field of travel, causing Didi's seemingly impregnable city to be suddenly opened. At the same time, policy uncertainty is also an aspect that troubles Didi. These factors are not good news for Didi's valuation, so listing at this time can only be a "bloody listing", and Didi is getting further and further away from its goal of a valuation of US$80 billion.

Therefore, Didi actively adjusted its strategy and launched "Licheng Private Car". Didi split the private car business and focused on more customized travel methods and improved service quality. Enhancing differentiated competition. At the same time, Didi also proactively contacted manufacturers to launch leasing services and lay out future travel services and driverless technology. And with the development of driverless technology, instant rental will become mainstream in future travel.

3. External factors made Didi feel that the IPO was no longer profitable. Currently Xiaomi (already on the market), Meituan-Dianping, Pinduoduo, Uxin used cars (already on the market), Huya (already on the market), Bilibili (already on the market), iQiyi (already on the market), Tongcheng-Elong, what is worth buying? Others have disclosed prospectuses or have successfully IPO'd. Internet companies such as Hujiang.com, 51 Credit Card (already listed), Wedai.com, and Liepin.com are also rushing to IPO.

Extended information:

The Internet industry has enriched the depth and breadth of the service industry, provided more employment opportunities, and there are still many business model innovations that can be explored, which is very suitable to be proposed again at the moment The spirit of mass entrepreneurship and innovation. For the online ride-hailing industry, there are many problems in the early development of this industry, and the regulatory level has basically grasped the key points and key links. Therefore, practitioners and enterprises need to strictly abide by the safety bottom line and have corresponding safety management and continuous service capabilities. On this basis, the scale of development can be expanded.

Zheng Lei further stated that the online ride-hailing industry is in a relatively balanced state of development. By expanding the scale of operations, it can accommodate more jobs. At the same time, for some companies with sustainable operations and safety management, they can Help it continue to grow through capital market financing.

Reference material: People's Daily Online - Meituan is about to go public. Why isn't Didi anxious?