Didi’s business is getting worse following government investigations

China’s Didi Chuxing business has declined sharply as balloons collapsed and the company burned $ 4.4bn which was raised for the first time in New York a few months ago.

Didi’s job losses grew to $ 6.3bn in the first nine months of the year and total revenue decreased by 2 percent in the third quarter compared to the same period last year.

The demolition came after officials forced Didi to stop signing new users and demanded that the home app store remove more than XNUMX corporate days. after the June IPO.

The figures showed the first opportunity for investors to see how the riders rode in front of the government. research in its data protection practices, and the results confirmed the impact of Didi’s business from sanctions.

Government data have shown that Didi’s the number of climbs has decreased its programs have been scrapped, but the company revealed Thursday that its Chinese revenue has fallen by 13 percent in the three months to the end of September from the previous quarter.

The economy is “very bad,” says Li Chengdong of Haitun think tank. “New users can’t use Didi and old users who get new phones can no longer download,” he said. “The resumption of the epidemic is also affecting.”

A supervisory review forced the company to make preparations to leave US markets a few months after it offered the New York Stock Exchange favorably. following the list in Hong Kong.

The Beijing Campaign too Valuable shares Didi, which is less than 60 percent from the IPO, shedding about $ 38bn in the market capitalization.

Company soon banned workers from selling their shares permanently, but Didi’s initial funds have been deducted from their value since Monday. The share price of the company has dropped by 12 percent this week.

Didi also announced that Daniel Zhang, Alibaba’s chief executive, has resigned and has been replaced by an ecommerce lawyer.

The Didi government investigation continues for several months, stopping the movement Some Chinese companies are heading to US markets while urging officials to work hard to control Big Tech teams in the country.

As a foreign team registered in the US, Didi will not be forced to disclose his quarterly earnings and publish his results for the second and third divisions together.

The results showed that Didi also lowered the cost. The company had $ 7.2bn in cash as well as bank deposits at the end of March and raised a minimum of $ 4.3bn in its June sales. But at the end of September, Didi’s accounts showed he had only $ 9.5bn.

The company recorded a loss of $ 1.4bn in the third quarter.

Didi has tried to differentiate between horse riding in recent years, but the release of the money shows that its transition to other businesses is also facing challenges.

The company listed the price of Chengxin, its group buying business, and $ 3.2bn. The deal has laid off employees and reduced his business since summer.