Chinese ride-hailing giant Didi Global has reported a significant 19% year-on-year drop in revenue for the year 2022. The decline, which saw the company's total revenue fall to 140.79 billion yuan ($20.37 billion), is attributed mainly to the effects of Covid-19 pandemic outbreaks during Q2 and Q4 of last year, as well as strict regulatory measures imposed by Chinese authorities.
Didi's China mobility business experienced a loss in 2022 but returned to growth this year due to a rapid recovery in travel across China after lockdown restrictions were lifted. "The resilience of our platform enabled us to navigate through adversity," said Cheng Wei, CEO and founder of Didi Global.
Despite facing challenges related to both global health crises and domestic regulations on data protection concerns, the Beijing-based firm remains optimistic about its future prospects. "We continue focusing on key strategic initiatives such as technological innovation, expansion into new geographies and services so that we can better serve customers around the globe," said Stephen Zhu, President of Didi International Business.
As part of its broader strategy for expansion beyond ride-hailing services, Didi has been investing heavily in electric vehicles (EVs) production capabilities with plans for autonomous driving technologies integration over time. This move comes at an opportune moment when automobile manufacturers worldwide are increasingly pivoting towards clean energy solutions amidst growing environmental concerns.
This earnings report marks the first annual release from Didi since it delisted from New York Stock Exchange last year following increased scrutiny from US regulators regarding listing standards compliance issues surrounding foreign companies operating within American markets.
Although challenges persist given recent market conditions coupled with ongoing uncertainties influenced by geopolitical factors between US-China relations, industry observers remain cautiously optimistic about prospects concerning overall performance improvements driven primarily through diversification efforts initiated by management teams at Didi Global.