China’s leading ride-hailing platform Didi Chuxing posted a Rmb 4 billion ($580 million) net loss for the first half of 2018, the Financial Times reports, as it continues to fork out heavy subsidies to drivers and passengers.
The figures, made public via a leaked letter from CEO Cheng Wei last week, quantify the doubts of investors that Didi has been struggling financially since its purchase of Uber’s China business two years ago.
“We are definitely not an evil company, and definitely not one focused on profits above all else,” Cheng wrote. Didi is yet to make a profit since its establishment six years ago. According to Cheng, this is because the company has been generous with its subsidies into 2018, giving out Rmb 11.7 billion in the first half of the year.
Didi is also trying to shake off safety concerns surrounding its services after two murder cases in the past four months. “We will invest our revenues in safety and the user experience,” Cheng added.