BEIJING (Reuters) -Chinese ride-hailing giant Didi Global reported on Thursday a second-quarter net loss of 2.5 billion yuan ($350 million), driven by a one-off charge, even as revenue rose 10.9%, partly fuelled by growth in overseas business.
The loss was largely due to a provision of 5.3 billion yuan for a previously disclosed shareholder lawsuit, while spending on marketing and other expense also increased, reflecting intensifying domestic competition.
Didi maintains its dominant position in China’s ride-hailing sector, but pressure from rivals is mounting.
Companies such as Alibaba and Meituan have integrated ride-hailing services into broader digital offerings, attracting users who prefer consolidated super-apps.
These platforms operate as aggregators, linking passengers with ride-hailing providers, including smaller regional operators.
Revenue rose to 56.4 billion yuan from 50.9 billion yuan a year earlier.
The overseas business, while still a small portion of overall revenue, has grown rapidly, including growth of 28% in the second quarter.
Didi returned to business expansion early in 2023 following a regulatory crackdown begun in 2021 after the company pursued a U.S. initial public offering without Beijing’s approval.
($1=7.1529 Chinese yuan renminbi)
(Reporting by Liam Mo and Brenda Goh; Editing by Toby Chopra and Clarence Fernandez)
