Ride-hailing service Didi Chuxing is set to acquire Uber China after Apple invested $1 billion dollars in the company in May this year.
Earlier this year, Apple made the interesting decision to invest $1 billion into Chinese ride-hailing service Didi Chuxing in a move that provided the Cupertino company with access to data and information on electric and autonomous car technology. Now, Didi Chuxing has proceeded to mirror that investment and has managed to acquire Uber China.
A formal statement revealed the specifics of the deal, noting that: “The valuation of the combined ride-hailing company is $35 billion, the people said. Investors in Uber China, an entity owned by San Francisco-based Uber, Baidu Inc. and others, will receive a 20 percent stake in the combined company, the people said. Uber will continue to operate its own app in China for now. Didi is making a $1 billion investment in Uber at a $68 billion valuation, people familiar with the matter said.” Read: Apple invests $1 billion into Chinese lift service Didi
Uber CEO Travis Kalanick, in a blog post on Bloomberg, noted that despite billions of dollars of investment into the Chinese landscape, neither Uber nor Didi Chuxing have succeeded in turning a profit. Kalanick noted that combining the operations of both firms would ‘smooth the path to profitability and a sustainable business’.
The move is a win for Apple, as the Cupertino company could now foreseeably have access to not only Didi Chuxing’s industry insight, but could further tap into Uber China in a similar manner. Apple’s rumoured Project Titan – its own initiative to build an autonomous car – is noted for its development of driving software which could only benefit from data gleaned from the operations of ride-hailing services in China. Read: Apple‘s earnings report reveals diminishing hardware sales, booming services
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