To subsidize drivers, Didi racks up annual loss of US$1.6 billion

And it’s laying off a quarter of its staff.

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To subsidize drivers, Didi racks up annual loss of US$1.6 billion

Financial data leaked from China’s ride-hailing service provider Didi shows that the company generated a deficit up to RMB 10.9 billion (US$1.61 billion) in the 2018 financial year.

Last September, Didi founder and CEO Chen Wei admitted that the company suffered from a RMB 4.04 billion loss ($598 million) in the first half of the year.

In 2018, the company spent a total of RMB 11.3 billion (US$1.67 billion) on incentives to attract qualified drivers, who need at least three years’ driving experience and must have no criminal record.

Didi suspended its carpooling business in August after two drivers raped and murdered their passengers. Two weeks ago, the company began the process of laying off a quarter of its workforce.

Editor: Brady Ng