Apple invests $1 Billion in Uber’s Main Rival in China Didi Chuxing

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Uber, the San Fransisco based ride hailing app has been keen on conquering the Chinese market. The company launched operations in China in 2013 and operatesUberBlack, UberX and UberXL services in various cities and towns in China. Uber also has a $1 Billion war chest for the Chinese market to compete with Didi Chuaxing.

Didi Chuaxing was previously referred to as Didi Kuaidi with the re-branding meant to shed off the image of a taxi firm rather than a transport company. Didi Kuaidi launched operations in February 2015. Didi Kuaidi was formed after the merger of rival apps Didi Dache and Kuaidi Dache. As of September 2015, the company boasted of a 78% market share, having raised $3 Billion for to help it scale its operations in China and the Asian markets. The company has also been investing in other startups in the space including Uber’s US rival Lyft and Ola Cabs of India.

According to a Reuters report, US technology giant Apple Inc. has invested $1 Billion in Didi Chuxing.  Apple sees the investment as critical in understanding the Chinese market.  The company has seen its growth in smartphone sales from China slowdown owing to economic headwinds. Apple has also been facing regulatory scrutiny in the market with some of its core services banned in the nation.  Apple also says the investment will allow for collaboration between the firms in future. Didi Chuaxing will be valued at $20 Billion after the completion of the deal 1/3 of Uber’s current valuation of $60 Billion.

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