Apple invests 1 billion dollars in Chinese ride-hailing service

Apple on Friday said it has invested 1 billion dollars in Chinese ride-hailing company Didi Chuxing, a move that comes as Apple's sales in its second-largest market are falling.

"We decided to make the investment for a number of strategic reasons, including the chance to learn more about certain segments of the China market," Apple chief executive Tim Cook told Xinhua news agency.

Didi Chuxing, formerly known as Didi Kuaidi, said in a statement that this is the single largest investment the company has ever received.

Didi Chuxing is also backed by Chinese internet giants Alibaba and Tencent.

The company said it serves around 90 per cent of China's car-hailing service market. 

Analysts said the investment would increase pressure on Uber, a San Francisco-based company that is pushing for more market share in China.  

"This investment is a two-way mutual win," said Wang Qingrui, a Chinese technology analyst.

"Didi is more than happy to accept this investment. Not only will their brand awareness be exposed to the international market, they can better compete with Uber.

"For Apple, it is a strategic choice as Didi is related to the car business, and its market value is climbing, so it is good timing to invest in Didi. Apple may look to increase Didi's expansion in Chinese and international markets," Wang told dpa. 

Last update: Fri, 13/05/2016 - 12:07
Author: 

More from Business

Samsung's quarterly profits more than double despite Note 7 debacle

Samsung's profits for the final quarter of 2016 were more than double the same period in the previous year, the...

Croatia presents investment opportunities to Alibaba

Representatives of the Chinese online company Alibaba are considering the Zadar area in Croatia as a location for...

Financial leaders in Davos optimistic about US, but see trade risk

The US economy will likely profit from the planned policies of its new president, as long as Donald Trump does not...

Facebook to build data centre in Denmark

The Danish city of Odense and social media giant Facebook announced on Thursday the city was to host a new European...

Freight train from China crosses 12,000 kilometres to London

The first Britain-bound freight train from China arrived in London on Wednesday, completing an 18-day trip across...