Apple invests 1 Billion Dollars in Chinese ride-sharing service Didi Chuxing.
Almost out of the blue, Apple just invested $1 billion into Chinese ridesharing service called “Didi Chuxing,” which is a direct competitor to the Uber ridesharing service.
Didi Chuxing serves up some 11 million rides a day and owns about 88% of the ride sharing services in China alone. Even with those impressive numbers, the Didi Chuxing service is supposedly losing millions in a war against Uber.
Supposedly, Apple CEO Tim Cook has stated that investing into this company will not only help Apple decipher how certain aspects of the Chinese market works, but bring a great return on their investment. Analysts and speculation also states that by buying into the service, it will help Apple’s efforts into possibly furthering their secretive self driving car initiative which is been said to have hired many auto engineers and tech engineers to battle companies such as Tesla. This is also the largest amount of money this Chinese company has ever received as an investment from any one company.
What’s next for Apple and Didi Chuxing?
As iPhone and iPad sales began to wind down for Apple, it seems as though Tim Cook is starting to try to diversify his company’s products and services to offset a huge amount of money the iOS products bring in yearly. Apple and the government of China have gone back and forth many times, sparring over different issues which makes this particular investment notable. Some analysts seem to think that this is a token to show the Chinese government that Apple is serious about moving forward in that country. This could also indicate a move by Apple to bring components of this ride-sharing service back into the United States and compete directly with services such as Lyft and Uber.
It seems now that Apple is going to concentrate more on value added services such as Apple Pay an Apple Music and slow down their hardware aspirations for a while. With the amount of money that services such as Lyft and Uber are bringing in, Apple seems determined to get a cut of the pie. As we said in a recent article, Apple does need to diversify itself quickly to maintain their current status is one of the largest companies in the world.