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Aya Lin · · 1 min readIn brief: Didi gives glimpse of its subsidy spending and cost structure
- Chinese ride-hailing giant Didi gave a snapshot of its commission rates and cost structure in an online post, TechNode reports.
- Almost one-third of Didi’s commission revenue was spent on driver subsidies in Q4 2018, wrote Chen Xi, executive president of Didi’s ride-sharing business group. Driver subsidies accounted for 7% of total fare revenue during the same period.
- Operating costs were roughly equivalent to 21% of total fare revenue from its private car-hailing business during this time. Meanwhile, Q4 average commission rate was 19% of fare revenue, and the 2% difference was recorded as an operating loss.
- Didi reportedly recorded a loss of around US$1.48 billion in 2018, nearly five times its reported US$400 million in losses a year earlier.
Editing by Eileen C. Ang
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