This week’s podcast is about Didi’s upcoming IPO. They have released their numbers and it shows market dominance but operating losses. This is my explanation for what is happening. And what their strategic plan means.
Here is the key paragraph from Didi’s IPO filing:
How I breakdown:
- Market size and/or growth
- Competitive strength and defensibility
- Unit economics
Questions for network effects:
- Local vs. regional vs. international network effects?
- Fast vs. slow network effects?
- Degree vs. value of connections?
- Minimum viable scale vs. asymptotic scale? What is congestion / saturation / degradation scale?
- Linear vs. exponential growth at different scales?
- Ant Financial and the 3 Types of Network Effects (Asia Tech Strategy – Podcast 86)
- A Day in the Life of a Didi Chuxing Driver (Pt 1 of 3)
From the Concept Library, concepts for this article are:
- Network Effects: Indirect
- Economies of Scale: Purchasing Economies
- 5 Forces: Substitutes
- 5 Forces: Threat of New Entrants
From the Company Library, companies for this article are:
I write and speak about digital competition and China / Asia’s leading tech companies.
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Note: This content (articles, podcasts, website info) is not investment advice. The information and opinions from me and any guests may be incorrect. The numbers and information may be wrong. The views expressed may no longer be relevant or accurate. Investing is risky. Do your own research.