Hi. Brady here.
Every few weeks, there’s another piece of news about Didi’s downward spiral. Ever since the company had its IPO on the New York Stock Exchange in June 2021, it has taken blow after blow.
Its application was removed from app stores, its treatment of gig workers came under scrutiny, and the implementation of new cybersecurity laws meant Didi would have to delist in the United States.
All of these factors and more have slammed Didi’s business. Its ride volume was 20% lower than the number recorded in its IPO prospectus from less than a year ago. Losses are mounting and company layoffs are imminent. One out of every five people at Didi will lose their jobs.
Yarns have emerged about what took place before Didi’s IPO. A common theme is that the company ignored advice (from government officials) to hold off, and perhaps consider seeking a ticker code closer to home.
You can read what’s happening to the company as the consequence of shrugging off those nudges, or just that it was operating at the juncture of rapidly changing conditions in laws, finance, public health, and more.
Jiaxing and Mengyuan covered the latest development. You can read their report here.
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