Didi posts 1.7% drop in Q3 revenue amid China clampdown

Didi Global said its revenue for the third quarter dropped 1.7% compared to the last quarter amid a crackdown by Chinese regulators that forced many of the ride-hailing firm’s apps to be taken down, Reuters reported.

The result follows a probe by China’s Ministry of Transport – along with other regulators – into local ride-hailers over allegations that the companies were conducting illegal operations.

While Didi’s revenue for the quarter fell to 42.7 billion yuan (US$6.71 billion), its net loss attributable to ordinary shareholders stood at 30.6 billion yuan (US$4.7 billion.)

Daniel Zhang, CEO of Chinese ecommerce giant Alibaba who has served as a director on Didi’s board since 2018, has resigned from the company. Shares of Didi have plunged by 65% since it went public in the US in 2014.

This month, Didi’s board also authorized a listing of its class A ordinary shares on the main board of the Hong Kong Stock Exchange.

See also: How China has been clamping down on big tech empires

Currency converted from Chinese yuan to US dollar: US$1 = 6.37 yuan.