Tag Archives: Didi Chuxing

Didi Chuxing nabs $600 million


Following its $1 billion raise from Apple, Didi Chuxing, Uber’s main rival in China, has secured yet another investment. State-owned China Life Insurance has infused $600 million into the company. The investment includes a private equity of $300 million at a $24.7 billion valuation and a long-term debt financing of $305 million. The funding comes at a time when Uber continues to ramp up its resources, recently taking $3.5 billion from Saudi Arabia’s Public Investment Fund. While Uber has more money and well known financiers, Didi Chuxing has the home-grown advantage with 300 million users. It also has the financial backing of Apple, as well as, Chinese corporations like Tencent, Alibaba, China Investment Corporation, and China Merchants Bank.

The future of mobility

The recent partnership between Apple and Didi Chuxing underscores the changing market dynamics in today’s auto industry. Consumers have started to shift from traditional car ownership to ride sharing, while tech companies are investing heavily in autonomous driving technologies in the hopes to make the roads safer and traveling more convenient. It’s a combination of these trends that has created a market conducive for partnerships and investments. In addition to Apple’s investment in Didi, other companies have recently partnered up, either to take on Uber or to explore the possibilities of autonomous cars. General Motors invested in Lyft, who has teamed up with Didi, Ola and Grab. Google has partnered with Fiat Chrysler Automobiles. The Chinese rivals Alibaba and Tencent have both invested in Didi. In short, this market consists of many alliances and these partnerships will surely unlock new transportation experiences for consumers.

Apple invests $1 billion in Didi Chuxing

Last week, Apple surprised the tech industry by investing $1 billion in Chinese ride-hailing startup Didi Chuxing, formerly known as Didi Kuaidi. According to sources, Didi Chuxing dominates 90% of the Chinese market and is valued at $25 billion. This deal is Didi’s largest investment so far. Thanks to previous investments from Alibaba and Tencent, the startup’s current funding round is oversubscribed. Thus, Didi does not really need Apple’s funding. However, the deal is beneficial for Apple for several reasons. The investment will allow Apple to have a more cordial relationship with the Chinese government and it will help the company gain valuable insights into the Chinese ride-hailing app and self-driving car markets.