Didi Chuxing, China’s largest ride-hailing platform, has revealed it is still losing money on many trips after one of the world’s most valuable start-ups publicly disclosed its expenses breakdown for the first time. In a statement published earlier this week, company executive Chen Xi said Didi pocketed about 19 per cent of each fare in China on average in the three months ended December 31, while its overall cost per journey was about 21 per cent. “The gap of 2 per cent is shouldered by Didi itself, made up from the capital raised in previous funding to cover [the loss],” said Chen, who oversees the ride-hailing business. “As a company, the situation is not sustainable in the long run, as we may not be able to continue normal operations if we run out of money one day.” However, he added that such losses are a “common phenomenon” across the ride-hailing industry as a whole. Loss-making Didi has kicked off a large-scale organisational restructuring and “optimised” 2,000 jobs since the start of the year as it pares back operational costs, said Chen. In Didi’s expenditure breakdown for the fourth quarter last year, about 10 per cent of fares were used to cover operations such as technology research, offline maintenance and customer service. Another 7 per cent was given to drivers during rush hour and those operating in densely populated regions as incentives, while 4 per cent was spent on taxes and online-payment transaction fees. Didi undergoes major structural overhaul with reported lay-offs The disclosure comes as privately-owned Didi has moved to enhance transparency in the wake of two passenger deaths and amid greater regulatory scrutiny. Founded in 2012, Didi beat out Uber Technologies in China after an expensive subsidy war in 2016. It counts Apple, Tencent Holdings, Baidu and Alibaba Group Holding among its backers. By comparison, US ride hailing leaders Uber and Lyft reported ratios of 22 per cent and 26.8 per cent respectively for net revenue as a percentage of total bookings in 2018, according to information in their IPO filings. In the past six years, Didi has raised a total of US$20.6 billion in funding over 17 rounds. In the latest round in July, it received US$500 million from US travel firm Booking Holdings, according to corporate data provider Crunchbase. In an internal letter released in September, the company’s co-founder and chief executive Cheng Wei said that the start-up recorded a net loss of 4 billion yuan (US$585 million) in the first half of 2018 and that it has yet to set a firm date for its initial public offering. Alibaba is the parent company of the South China Morning Post.