Didi Global's Remarkable Turnaround: From Regulatory Setbacks to Profitable Growth

China's largest ride-hailing company, Didi Global, posted a net profit of 1.4 billion yuan in Q2, rebounding from last year's losses. The company overcame regulatory challenges and is expanding its presence in markets like Brazil and Mexico. Co-founder Jean Liu stepped down but remains active as a permanent partner.

China's dominant ride-hailing company, Didi Global, has reported a net profit of 1.4 billion yuan ($196.24 million) for the second quarter, marking a notable recovery from a 300 million yuan loss in the same period last year. This comes as the company rebuilds from the regulatory setbacks it faced over the past two years.

The resurgence follows intense scrutiny from China's cyberspace regulator, which targeted Didi Global in 2021 for its unauthorized U.S. IPO attempt. This led to a ban on adding new users and removal of several apps from major platforms. The regulatory body later imposed a hefty $1.2 billion fine on Didi over data security issues, but allowed it to relaunch its apps early last year.

Notably, Jean Liu, a co-founder, stepped down from her president and board director roles this year, although she continues to serve as the chief people officer and retains significant influence within the company. Didi, known as China's version of Uber, has a strong domestic market and substantial operations in Brazil and Mexico. In June, Didi recorded 971 million ride-hailing trips, a 27.3% increase from the previous year.

(With inputs from agencies.)