China's ride-hailing company Didi Chuxing announced that its overseas business has been slow that it is considering to enter new markets and invest in payment firm acquisitions instead. The company hopes for bullish prospects that it expects a 'double-digit' percentage hit in the short-term.
According to the chief operating officer of Didi Chuxing's international operation Tony Qui, the company expects to raise a 'double-digit' percentage hit in the short-term despite the disruptions caused by the pandemic. He hinted that the gloom across the ride-hailing industry has been suffering from travel restrictions imposed by several governments, but continues to see a healthy future for growth.
In an interview with Reuters, Qiu said that its overseas business has slightly recovered after reaching a low during mid-March this year. He claimed that the short-term progress would positively impact the industry with double-digit returns, thereby continuing its efforts to improve from the pandemic and overcome its adverse effects.
Last week, the company's strongest competitor Uber Technologies, warned that businesses operating in its relative market might lose 102 million USD of revenue during the first half of 2020 as it experienced. On the other hand, another strong competitor, Singapore-based Grab, also announced that its customer volumes significantly decreased by a double-digit percentage in some countries for the same reasons as well. As a result, Uber withdrew its 2020 forecast for gross earnings and bookings, while Grab committed to capping its costs.
Uber currently owns 15 percent of Didi Chuxing since September 2018 after it sold its Chinese operations to the rival back in 2016. At present, Didi Chuxing is the most prominent ride-hailing firm operating in China and has been backed by Japan'sSoftBank Group. The partnership increased the value of the company by 12 billion USD and was valued at 56 billion USD since 2017.
Qui did not expound on financial details of Didi Chuxing and how the pandemic affected the company's business operations. He, however, noted that it saw daily rides hit a record high of five million before the pandemic struck the country. On the other hand, the average regular overseas trips of the company accounted for 20 percent of its entire ride-hailing operation.
Talking about the company's bullish approach in the Chinese market, Didi Chuxing's chief executive officer Cheng Wei announced last week that the firm aims to acquire 800 million monthly active users globally. He also hinted that the expectation of 100 million orders would be achieved by 2020 after it improves its service and include ride-sharing and bike and food delivery orders.