Chinese ride-hailing giant Didi Chuxing announced an 8.5% increase in revenue for the first quarter of 2025. The company earned 53.3 billion yuan ($7.42 billion) during the period, reflecting a steady recovery from past regulatory challenges.
Net Income Turns Positive After Accounting Changes
Didi reported a net income of 2.4 billion yuan for the quarter, a significant improvement from a loss of 1.4 billion yuan in the same quarter last year. This change follows the adoption of new accounting standards.
Background: Regulatory Setbacks and Recovery
Didi faced major regulatory hurdles after its unapproved initial public offering (IPO) in the United States in 2021. China’s cybersecurity regulator launched an investigation that stopped Didi from adding new users and led to the removal of many of its apps from online stores.
In July 2022, the company was fined $1.2 billion for data security breaches. Regulators later permitted Didi to relaunch its apps in early 2023. However, the company was delisted from U.S. stock exchanges the same year.
Growing Travel Demand Supports Business
Despite slow economic growth in China, demand for travel services is improving. This quarter, Didi completed 3.3 billion transactions on its platforms in China. This marks a 10.3% increase compared to the same period last year.
