Didi Global returns to profitability in fourth quarter

Didi announces profit: China's leading ride-hailing company, Didi Global, announced on Saturday that it had achieved a profit in the fourth quarter, signalling a gradual recovery from challenges following extended regulatory scrutiny.

Didi Global reported a net income attributable to shareholders of 818 million yuan ($113.15 million) for the three months ending December 31, compared to a loss of 953 million yuan during the same period the previous year. Revenues surged by 55.4 per cent to reach 49.4 billion yuan for the quarter.

In 2021, Didi faced regulatory scrutiny in China over its attempt to launch a US initial public offering without prior approval, leading to an investigation that restricted its user growth and resulted in the removal of many Didi apps from major app stores. 

The company was fined $1.2 billion in July 2022 for data security violations. However, Didi began to recover from these regulatory challenges in early 2023 after receiving permission to reintroduce its apps.

Didi's net profit in Q4 2023 was impacted by a major one-time expense incurred in November to compensate users for a glitch that disrupted its ride-hailing app. 

In response to the malfunction, which lasted for several hours, the company issued millions of customers with coupons valued at 10 yuan ($1.40) each as part of an apology gesture.

(With Reuters Inputs)