Electronics producer Apple has invested $1bn in Didi Chuxing, the China-based ride hailing app formerly known as Didi Kuaidi, Apple CEO Tim Cook told Reuters yesterday.
Didi Chuxing is the operator of China’s most popular app-based ride ordering service, spanning taxis, private cars, carpooling, buses and business transport services. It claims to be responsible for some 11 million rides each day, equating to an 87% market share in its home country.
Apple has not been a fervent corporate venturer but Cook told Reuters the company had partly elected to invest in Didi Chuxing to explore the Chinese market, and suggested there would be opportunities to collaborate directly in future.
Cook said: “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market.
“Of course, we believe it will deliver a strong return for our invested capital over time as well.”
Cook’s remarks could pertain to Apple’s secretive autonomous car project, for which it has hired engineers and explored testing sites, though he maintained the firm’s current transport focus was on its CarPlay technology, which enables in-car systems to be controlled by Apple mobile devices.
Apple has not disclosed the size of the stake it acquired through the investment, though reports last month suggested Didi Chuxing was raising up to $1.5bn in a round also featuring internet company Tencent and e-commerce firm Alibaba at a valuation of more than $25bn.
The investment brings Didi Chuxing’s overall funding, including the capital raised by Didi Dache and Kuaidi Dache prior to their February 2015 merger to form the company, to about $5.5bn.
The company most recently closed a $3bn funding round in September 2015 at a $16bn valuation backed by Alibaba, Tencent, insurance group Ping An, Temasek, China Investment Corp, Capital International Private Equity Fund and Coatue Management.
Telecoms and internet group SoftBank, online messaging platform Sina Weibo, auto rental service eHi, DST Global, Matrix Partners, New Horizon Fund and Citic PE are also shareholders in Didi Chuxing.