According to a press report, Apple Inc. has invested $1 billion in Chinese ride-hailing service Didi Chuxing, a move that Apple Chief Executive Tim Cook told reporters would help the company better understand the critical Chinese market.
This is a new and an innovative move by Apple as this will position the company to capitalize on two burgeoning waves of technology – the sharing economy and car technology
Also, this comes amid signs of a maturing cell phone market in which the company sharpened its teeth.
Apple is trying to reinvigorate sales in China where it has come under greater pressure from regulators, and Cook is traveling to the country this month.
The move aligns Apple with Uber Technologies Inc.’s chief rival in China as automakers and technology companies forge new alliances and make cross investments.
Cook said in an interview that he saw opportunities for Apple and Didi Chuxing to collaborate in the future.
“We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market,” he 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, said in a statement that this was the single largest investment it has ever received.
The company, which previously raised several billion dollars, dominates the ride-sharing market in China. The company said it completes more than 11 million rides a day, with more than 87 percent of the market for private car-hailing in China.
Yvad Billings, Readers Bureau, Fellow
Edited by Jesus Chan
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