Apple, on May 12, 2016 has announced that it is investing $1 billion in Chinese ride-hailing service Didi Chuxing. Didi Chuxing is the major competitor of Uber Technologies Ltd in China.
Spokesperson of Didi Chuxing confirmed this news, and told that the smartphone giant is now a strategic investor in their company along with Chinese e-commerce giant Alibaba Group and Tencent Holdings. Tencent is an online games and entertainment service provider, and it is very much popular in China.
Didi Chuxing is basically a one-stop mobile transportation platform. It was formerly known as Didi Kuaidi, and is growing rapidly along with the booming ride-hailing industry in the nation.
Investment of Apple in Didi Chuxing will give them an upper hand over Uber, and is expected to benefit them in the running fiscal year. Both Uber and Didi Chuxing are known for providing generous incentives for riders and drivers if they sign up their services.
Chief Executive Officer of Didi Chuxing told that it is their privilege to work along with Apple, and they hope that it will create an extra mileage for the four-year-old company. The statement issued by the CEO also read that the company will work hard for the betterment of transportation in the nation.
Apple’s iPhone sale is not going as expected in the first quarter of 2016, as for the first time ever, the company marked a drop in the business.
Jean Liu, President of Didi shared his excitement about the partnership with Apple. He told that Apple is such a company which is known for its innovative approach and cutting edge attitude. He added that Didi has many things to learn from Apple.
In the midst of all these developments, Apple CEO told Reuters that the company is making investments in Didi to learn more about the growing Chinese market.
Business experts believe that Apple is making this move to stem the growth of Uber in International market.