Is ride-sharing service Dida Inc. (2559.HK) nearing the end of the road?
That question was looming large in a profit warning issued last Friday by China’s first major ride sharing company to list. The alert showed not only that Dida’s revenue fell sharply in 2025, but that the drop accelerated in the second half of the year. The company’s profit moved in a similar direction, and may have even slipped into the red in the second half of the year.
Dida blamed competition and China’s slowing economy for its rapidly falling fortunes. The company is somewhat different from larger peers like DiDi Global and CaoCao (2643.HK) in its focus on shared carpooling services for budget-conscious riders. Such services offer fares that are cheaper than traditional ride-hailing services, but with the condition that one car may pick up and drop off several riders at different places on a single trip.