Apple Inc announced on May 13, Friday, that the company is investing $1 billion in the Chinese transportation service Didi Chuxing. This investment is the single largest investment received by Didi so far.
Apple's investment in Chinese startup Didi Chuxing denotes that the two companies will be working together closely, Didi president Jean Liu said during a conference call with reporters. However, it is still not clear as to how the deal will help Didi.
The investment comes in the wake of Apple's endeavors to reinvigorate the company's sales in China, the second-largest market of the Cupertino technology giant outside the United States. In recent times, Apple has been under considerable pressure from Chinese regulators, which has banned the company's services like iBook and iTunes Movies.
The investment is a means to enhance the company's presence in China, Apple CEO Tim Cook told Reuters. He further said that the company was making the investment for several strategic reasons, including an opportunity to know more about specific segments of the Chinese market.
According to Cook, Apple sees plenty of opportunities for closer collaboration between the Cupertino tech titan and the Chinese company. He added that they also believe it will deliver strong returns. In fact, the investment in Didi Chuxing presents Apple, which has already hired several automotive experts during the last one year, with a considerable stake in the main rival of Uber Technologies Inc in China.
While there are rumors that Apple has been working on an Apple car, Didi Chuxing is yet to confirm if it is also working actively on self-driving technology. However, Liu has said that his company is developing a technology platform and they intend to work with any partners, Business Insider reported.
Liu told reporters that they believe in autonomous driving and that technology is the solution. According to him, as far as autonomous driving is concerned they are willing to work with diverse partners. "It is technology neutral," Liu added.
In any case, the investment offers Apple a considerable influence on the Chinese marker, as Didi Chuxing, earlier known as Didi Kuaidi, is the biggest hail riding service in China. The company holds more than 87 percent of the Chinese market for private car-hailing and presents considerable challenge for rivals such as Uber.
Didi Chuxing claims that currently it has more than 300 million users in more than 400 Chinese cities. It also claims that the company achieves over 11 million rides daily.
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