DIDI

Analysis before buying or selling Didi shares

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Do you want to buy or sell Didi shares? Before doing so, you must of course know the parameters that can be useful to you in your analysis of its share price. This is what we propose you to discover in this page with all the necessary information including a presentation of this company and its activities and sources of income, a presentation of its main competitors on the market or its recent partners, but also its main advantages and disadvantages. We will also explain how to set up a good fundamental analysis of this stock.

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ISIN code: US23292E1082

Ticker: OTCMKTS: DIDIY

Index or market: Nasdaq US OTC

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Elements to consider before selling or buying Didi shares

Analysis N°1

Government regulation: Government policies and regulations may affect the company's operations, such as licensing restrictions and safety requirements.

Analysis N°2

Competition: Didi faces strong competition in the ride-sharing industry, including from companies such as Uber and Meituan. Competition can influence Didi's market share and the demand for its services.

Analysis N°3

Technology: Technology plays an important role in Didi's business. The company must continue to innovate and improve its technologies to remain competitive and meet the demands of its customers.

Analysis N°4

Market: Market trends, such as urban population growth, lifestyle changes and consumer preferences, can influence the demand for Didi's transportation services.

Analysis N°5

Employee and driver relations: Employee and driver relations may affect service quality and customer satisfaction.

Analysis N°6

Investment: Investments can influence the growth and expansion of the company, as well as its ability to innovate and improve its services.

Analysis before buying or selling Didi shares

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General presentation of Didi

A good knowledge of Didi and its activities is also essential to understand how its stock market share may behave on the market. Here is therefore a detailed presentation of this Chinese company and its main sources of revenue.

Didi is a China-based mobility company founded in 2012. It offers a ride-sharing platform in China, similar to Uber. Didi has become the market leader in ride-sharing in China in a short period of time by offering affordable and reliable transportation services to Chinese consumers. The company also operates in other countries in Asia, Latin America and Australia. Didi is considered one of China's most valuable technology companies and has attracted significant investment from institutional investors and major technology companies such as Apple and SoftBank.

Didi is mainly active in ride-sharing services. The company offers a ride-sharing platform in China that connects drivers and passengers for shared trips. Didi's platform also offers transportation services such as chauffeur-driven cars (DTC), taxis, child transportation services, self-service bicycles and electric scooters. In addition, Didi also operates in other countries outside China and offers similar services in those regions.

In addition to its ride-sharing business, Didi has also developed an intelligent transport platform that helps cities improve their mobility by optimising existing transport services and offering sustainable mobility solutions.

Photo credits: ©askarimullin/123RF.COM

The major competitors of Didi

It is also important to know who the company's main competitors are in its core business. Didi faces strong competition in the ride-sharing sector. Didi's main competitors are:

Uber

Uber is a major competitor for Didi, with a presence in many countries around the world.

Meituan

Meituan is a food delivery and travel services company in China that also offers ride-sharing services.

Grab

Grab is an Asian-based ride-sharing company that provides transportation services in several Asian countries.

Ola

Ola is an Indian-based ride-sharing company that provides transport services in several cities in India and Australia.

Go-Jek

Go-Jek is a carpooling company based in Indonesia that offers transport services in several cities in Indonesia and Thailand.

The major partners of Didi

Of course, Didi does not only have enemies in its market, but also important allies. The company regularly enters into strategic partnerships with other companies. Here are some examples of recent partnerships:

Toyota

Didi and Toyota announced a strategic partnership in 2018 to develop mobility services in China. The two companies worked together to develop sustainable and low-carbon transport solutions using autonomous car technology. In addition, the partnership aims to strengthen the fleet of vehicles used for Didi's ride-sharing services. Specific details of the partnership include the provision of Toyota vehicles for Didi's ride-sharing services, as well as cooperation on autonomous car technology.

Alibaba

Didi and Alibaba announced a partnership in 2015 to develop mobility services in China. The two companies worked together to develop online payment solutions for Didi's ride-sharing services, as well as to improve data processing services. In addition, Alibaba has invested in Didi to strengthen their partnership and expand their respective businesses. Specific details of the partnership include cooperation on online payment services and data processing services.

Tencent

Didi and Tencent announced a partnership in 2016 to develop mobility services in China. The two companies worked together to develop data processing solutions for Didi's ride-sharing services. In addition, Tencent has invested in Didi to strengthen their partnership and expand their respective businesses. Specific details of the partnership include cooperation on data processing services for Didi's ride-sharing services.

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The factors in favour of a rise in the Didi share price:

Finally, let's look at the main advantages and disadvantages of the Didi share, which correspond to the strengths and weaknesses of this company in the market and in relation to the competition.
The main strengths of Didi in relation to its competitors include the following

Leading position in the Chinese mobility services market
Strong network of partnerships with technology and automotive companies such as Alibaba and Toyota
Huge user base in China
Diversified offering of mobility services, including car sharing, car rental, taxi services, etc.
Significant investment in research and development of autonomous car technology

The factors in favour of a drop in the Didi share price:

Finally, as regards the main flaws in this stock and Didi's weaknesses, we can mention :

Strong competition in the Chinese mobility services market, especially from competitors such as Meituan and Grab
Strict government regulations in China, which may restrict the company's activities
Dependence on a single geographic region, China
Safety risks for users, especially after several cases of violence related to ride-sharing services
Need to continue to invest in technology to remain competitive in the rapidly changing mobility services market.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

How to perform a good technical analysis of the Didi share?

To set up a good technical analysis of the Didi share, you must first of all use customisable charts by displaying various indicators such as trend indicators and volatility indicators. These indicators will help you to highlight bullish or bearish signals for this stock. However, it should be remembered that technical analysis is not a 100% reliable solution and should be interpreted with caution.

Will the Didi share price go down or up?

Of course, it is not possible to know precisely whether Didi's share price will go up or down in the longer or shorter term. You must first and foremost carry out solid analysis of this stock and follow the news about this company and its market to obtain information that can help you anticipate the most likely future movements for this stock.

Does Didi stock pay a dividend?

Currently, Didi does not pay a dividend to its shareholders. This is because this technology company prefers to implement a growth strategy and reinvest its profits in innovation investments or other operations in order to gradually increase its turnover. However, it is not impossible that Didi will offer a dividend to its shareholders in the years to come, once it has reached maturity in the market and in its sector.

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