Didi lost tens of billions and Meituan lost hundreds of billions. Both drivers and riders said they were not making any money. Where did the money go?

Nowadays, people’s lives are becoming more and more convenient. If you want to eat delicious food, you can just order takeout without leaving home. You can also make a reservation in advance when going out by car. Among the food delivery and ride-hailing platforms, the most famous ones are Meituan and Didi. In everyone's mind, Meituan and Didi both make money. In fact, this is not the case. Meituan lost more than 115 billion yuan last year. Didi, on the other hand, lost 10.9 billion yuan. But Meituan riders and Didi drivers both say they don’t make any money, so where does the money go?

Founder Cheng Wei said directly that they have never made any money since their establishment 6 years ago. The implication is that all the money was given to taxi drivers as subsidies and served the people. But the drivers thought they would be free with Didi, but ended up being led by the subsidies. Some drivers even said that they only sleep and drive every day, and they work hard for Didi.

On the other hand, passengers have not been well served. The vicious incidents that have occurred one after another in Didi have made it difficult for people to take taxis with peace of mind. Therefore, passengers have not been well served and drivers are not living well. Didi Didi's huge losses show that Didi has not created any social value at all and has no meaning of existence at all. Then it should simply be shut down. Of course, this is a joke. Putting all this aside, does Didi really not make money? Didi takes a 30% commission from drivers’ turnover. In 2017, Didi’s annual loss was only 2.5 billion yuan, and last year it lost 11.3 billion yuan. The biggest change in Didi last year was the permanent closure of the ride-hailing business. One of the important reasons for Didi's losses is that in addition to travel, investments involve various fields, such as financial management, finance, etc. Didi even worked as a food delivery platform and Meituan to seize the market, but it still failed.

Meituan also faces the same problem as Didi. Meituan’s losses are much greater than Didi’s, reaching more than 100 billion. Meituan is a newly listed company. Although its market value is constantly growing, the company ended up losing money. Now Meituan’s commission for merchants has reached 23, but Meituan’s losses are not due to subsidies to merchants. Even if Meituan gives merchants this part of the subsidy, merchants are still not making money, so now there are Some stores began to withdraw from Meituan.

For example, Meituan’s acquisition of Mobike caused Meituan to suffer a lot of losses. Didi lost tens of billions and Meituan lost hundreds of billions, but drivers and riders said they were not making any money and where did the money go? They all said that Internet companies are propped up by burning money. So it seems that Meituan and Didi are losing money. It's also normal.