DiDi Global (DIDI) and Lyft (NASDAQ:LYFT) are market leaders in the ride hailing space in China and North America, respectively. Both these companies are part of an expanding addressable market and are trading significantly below their all-time highs.Ride-hailing companies continue to remain attractive to growth investors given that people now view these platforms as a convenient alternative to owning automobiles. A research report from Markets and Markets forecasts the global ride-sharing market to expand from $81 billion in 2021 to $186 billion in 2026, which is a growth rate of 16.6% annually.
While most of the ride-hailing companies are grappling with negative margins, the bottom-line continues to improve due to economies of scale, after a pandemic hit year.
In this article, we compare DiDi Global (DIDI), which is China’s ride-hailing giant, with North American heavyweight Lyft (LYFT) to see which is a better stock right now. Lyft went public in 2019 and DiDi Global was listed on the NYSE this year.