Apple invests big in Chinese cab-hailing service Didi Chuxing
China | Red Newswire | May 13 1:38 PM IST.
Apple announced this Thursday that it has pumped $1 billion in Didi Chuxing, a Chinese ride-hailing service. Apple CEO, Tim Cook said that the company took this move to better under the Chinese market. The investment is part of Apple’s efforts to revive its sales in the Chinese market. China is Apple’s second largest market. Recently Chinese regulators had put some pressure on Apple by shutting down its online film and book services last month.
Apple has hired a number of automotive experts last year and with this investment Apple gets a good share in the Didi Chuxing which is Uber’s biggest rival in China. In a statement, Cook said that this step might open up opportunities for future collaboration between Apple and Didi Chuxing. He 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."
Didi Chuxing was earlier known by the name Didi Kuaidi. The company said in a statement that is the single largest investment it has received till now. The company presently dominates the Chinese ride-market. Didi Chuxing records 11 million rides per day out of which 87 percent comes from private car-hailing.
All over the world people are thinking if Apple might enter the automotive business since it hired many automotive experts and is also working on a self – driving car as reported by Reuters.
Cook said that Apple will stay focused on its CarPlay system – a system that allows you to link your smartphone to your car. he said, “That is what we do today in the car business, so we will have to see what the future holds.” Even though the Chinese market has tripped owing to the slow economic growth, Cook said he is confident of the market. He said the investment "reflects our excitement about their growing business ... and also our continued confidence in the long term in China's economy.”