Tag Archives: Didi Chuxing

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.