Apple invests $1 billion in China’s Didi ride-hailing company image

The tech giant has announced a large investment in China’s Uber rival, which is also the biggest ride-hailing company in the country.

Apple aims to expand its business further from its core focus of gadgets and car technology crossed with the boost of the sharing trend is seen as the proper direction for exploring. And, of course, China is also the right place to look for an investment. Also, a 1-billion-dollar deal is worth the money, considering the huge opportunities of the Chinese market. “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market,” Apple Chief Executive Tim Cook said. “Of course, we believe it will deliver a strong return for our invested capital over time as well.”

Didi Chuxing, formerly known as Didi Kuaidi, has the biggest market share of car-hailing apps in China, with more than 80 percent of it. It completes more than 11 million rides a day and serves about 300 million users in China. However, even if the company is valued around 20 billion dollars, its battle with Uber means lower profits and such a partnership is more than welcomed.

Such a move clearly shows that Apple’s intention related to the automotive sector are quite serious. While the Cupertino-based company is secretly working on an electric-autonomous car for years, it is also reportedly looking into buying some really large site in the San Francisco Bay Area to build a new test facility for its project.

Via Reuters