Apple has reportedly invested an amount of $1 billion in the largest ride-hailing service in China called Didi Chuxing, formerly known by the name Didi Kuaidi. With a 87% market share in the ride-sharing segment in China, Didi Chuxing provides over 1 million rides in one day. The company has a high portfolio of investors including Softbank, Alibaba and Tencent. However, Apple’s $1 billion investment makes it the single largest funding for Didi Chuxing till date.
Tim Cook, in a statement to Reuters, said:
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.
(The deal) reflects our excitement about their growing business … and also our continued confidence in the long term in China’s economy.
Apple has always found it tough to survive in the Chinese market, more so because of the shutdown of iTunes Movies and iBooks in the country. This makes the investment in Didi Chuxing of more importance as Apple is seen to go beyond consumer electronics. With the Cupertino giant in itself working on the driverless car project, Didi could well be a part of it in the near future.