Editor’s note: A version of this post was previously published by ValueChampion, a research firm that aims to help consumers make smarter decisions with their money.

Ridesharing companies are starting to come to the public market in 2019. With Lyft planning an IPO in March, and Uber and Didi also preparing for an IPO this year, it’s important for interested investors to understand the competitive dynamics in this industry around the world.

A number of major players around the world have raised billions of dollars to compete fiercely in their respective regions, a dynamic that has resulted in heavy losses for every company involved. For example, Uber reportedly lost $1.8 billion in 2018, while Didi also lost about $1.6 billion in China largely due to rider and driver subsidies, drawing concern about whether these businesses will ever generate enough profit to justify their high valuation.

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DJ Kang

DJ Kang is the CEO of ValueChampion. He covers the financial services industry, consumer finance products, budgeting, and investing. He previously worked in the financial services industry, including at...