US technology major Apple today said it will make an investment of $1 billion in Chinese ride-hailing platform, Didi Chuxing.
The significant investment in a Chinese company shows the eagerness of Apple to expand its presence in China, the second largest market for Apple after the U.S.
The investment reflected Apple’s excitement about Didi’s fast-growing business and its continued confidence in China’s economy in the long run. The latest Didi investment suggests the US company is placing greater focus on app developers in China.
Didi Chuxing has nearly 300 million users. Didi Chuxing holds about 87 percent share of the private-car-hailing market in China and about 99 percent share of its taxi-hailing market.
Didi Chuxing has also made investment in its peers Lyft in the US, Grab in Southeast Asia and Ola in India to compete with rival Uber outside China. This is the single largest investment Didi Chuxing has received.
Apple CEO Tim Cook said: “We decided to make the investment for a number of strategic reasons, including the chance to learn more about certain segments of the China market. We see lots of opportunities for closer cooperation between the two companies, and we also believe it will deliver strong returns.”
Apple has invested significantly to expand its presence in China through Apple stores, environmental initiatives, and supply chains.
Like Apple, Didi Chuxing is focused on providing a great experience to Chinese customers, and in the process they’re creating jobs and economic opportunities through innovation. It is also helping the environment by reducing the number of cars on the road.
Cheng Wei, founder and CEO of Didi Chuxing, said: “The endorsement from Apple is enormous encouragement and inspiration for our four-year-old company.”
Didi Chuxing will continue to offer flexible and reliable transportation choices and help cities solve transportation, environmental and employment problems.
Apple has huge cash reserves to make investments and is looking for bright opportunities in the U.S. and abroad.