Shares of DiDi (DIDI) are taking a major hit lately after the emergence of news that suggested that Chinese regulators are planning to impose 'unprecedented penalties' on the company. The company has been in the news ever since it went public on the New York Stock Exchange back in late June.
What is Didi?
DiDi is China’s biggest ride-hailing company founded by Cheng Wei, a former employee at Alibaba (BABA) , in 2012.
Formerly known as Didi Kuaidi, the company merged with its rival Kuaidi Dache to become Didi Chuxing or ‘DiDi’ in 2015.
Didi is so popular in China that Uber (UBER) could not compete with it, forcing it to sell its Chinese division to DiDi in 2016.
DiDi Global raised $4.4 billion for a total valuation of $68 billion when it went public at NYSE. It was the biggest IPO of a Chinese company to be listed on a U.S. exchange since Alibaba went public in 2014.
The company has expanded its global footprints in 13 countries across Asia, Australia, Africa, Latin America, and Eastern Europe. The company claims that it has over 493 million annual active riders.