Didi Chuxing, a Chinese ride-sharing service just received one billion dollars as an investment from Apple, making this the first official break of the company into the automotive industry. 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.
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“We see lots of opportunities for closer cooperation between the two companies, and we also believe it will deliver strong returns”, he said.
However, the move also suggests that Apple is looking to partner with Didi to bring its long-rumoured electric vehicle to market. The ride-sharing service says it completes more than 11 million rides per day. General Motors (GM.N), for example, recently bought autonomous driving technology company Cruise Automation and has also taken a stake in USA ride-sharing company Lyft. The development comes at a time when Apple has been striving to boost sales in China, its second-largest market after the US. Analysts anticipate that Apple’s investment could help the company diversify beyond its current portfolio, and possibly even into the realm of self-driving cars.
Apple surprised with the announcement of investing $1 billion in Chinese Uber competitor Didi Chuxing.
“Didi exemplifies the innovation taking place in the iOS developer community in China”, Cook said.
Uber, Didi Chuxing’s main rival, is not faring so well in China.
An Uber spokesperson confirmed the company is yet to officially comment on the Apple-Didi deal. According to the BBC, Uber reports losing about $1 billion each year in China by offering fares with lower, subsidized rates. “This is a chance to learn more about the Chinese market”, Apple chief executive Tim Cook said.
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“That is what we do today in the auto business, so we will have to see what the future holds”, he told Reuters. Lyft says it also has plans to allow US passengers traveling in China to request a ride using Didi.
