Apple invests US$1b in China’s ride-hailing company Didi

The move could give Apple a beachhead in a key Chinese market segment

Apple has invested US$1 billion in China's largest ride-hailing company, Didi Chuxing, in a move that could give it an opportunity to participate in the local company's bid to build a data-driven ride-share platform.

Didi, which is already backed by big local players like Tencent and Alibaba, said it has raised the Apple investment as a part of its latest funding round. The investment by Apple is the largest single investment Didi has ever received, it added.

Apple has been indicating that such an investment was coming for some time now, said Patrick Moorhead, president and principal analyst at Moor Insights & Strategy. The company has already said that it plans to increase its services revenue and that the Chinese market is a key component of its overall strategy going forward, Moorhead said.

China is already the second largest market by revenue for Apple, though revenue fell 11 percent from this market in the last quarter.

CEO Tim Cook said recently the company would invest in mergers and acquisitions to boost its various businesses, including services.

The Chinese company has teamed with other players to form an alliance to counter the growing influence of Uber Technologies. Didi announced in September last year a $100 million investment in Lyft, which would allow Lyft users visiting China to access Didi services from their native apps. Didi has also invested in regional players like India's Ola and Malaysia's GrabTaxi.

The company is a big player in China, and completes over 11 million rides a day on its platform, serving close to 300 million users across over 400 Chinese cities, with a wide range of mobile technology-based transportation options.

There has been speculation previously that Apple would get into self-driving cars. A partnership with Didi could give Apple an opportunity to sell its technology in 5 to 10 years to the ride-hailing company, as it and its rivals like Uber transition to autonomous cars, Moorhead said.

The investment, which would use the large amount of funds Apple holds overseas, would also give it a prominent place on the table in China's transportation industry, he added.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?