Apple invests $1 billion into Chinese lift service Didi
Apple takes another step to dominate the Chinese market and to expand their fledgling auto-mobile division by investing in Didi.
If you are big in China, you are going to do well. Apple has announced a $1 billion investment in Chinese Uber-like service, Didi Chuxing. The country’s homegrown ride-hailing service already has plenty of cash, and was recently valued at over $25 billion. Reuters reported that Didi owns 87 percent of the private car hailing industry in China, thus the move by Apple isn’t without merit. Read: Apple car rumoured to be released in 2019
Tim Cook, Apple CEO, said the investment would help the company better understand the Chinese market (also it falls in the recent car product exploration by Apple). Cook stated – “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market. Of course, we believe it will deliver a strong return for our invested capital over time as well.” Read: Apple Car project is keeping local neighbours awake
Similar investments and collaborations are also underway in China. LeEco has already teased its autonomous electric car and is envisioning a fleet of autonomous taxis connected through China’s car-hailing app Yidao Yongche — the car maker is an investor. This is another big step for Apple both in the Chinese market as well as the auto-mobile industry. We are just waiting for Apple to announce their first electric vehicle (maybe they buy Tesla, who knows!)
Source: Engadget Follow Jaco on Twitter:@Jaco_vdWalt