Chinese ride hailing service Didi Chuxing receives a surprise investment from Apple.
Apple surprised with the announcement of investing $1 billion in Chinese Uber competitor Didi Chuxing. According to Reuters, Tim Cook said the investment would help the company better understand the critical Chinese market.
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"We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market," Apple's CEO said. "Of course, we believe it will deliver a strong return for our invested capital over time as well."
Apple rarely announces investments. Didi Chuxing, formerly known as Didi Kuaidi, said that the investment from Apple was the single largest investment it has ever received.
Didi Chuxing is the leading ride sharing service in China. Apple lined itself up with the leader, but faces now off with California's Uber. How the Apple Didi Chuxing fits into Apple's secret car plans remains to be seen.
I believe Tim Cook when he says that the dropped the money to get deeper into the Chinese market to better understand it. Apple can afford to pay a Billion Dollars to just get some insights and get connected.
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While the company is named Didi Chuxing the website domain is called xiaojukeji. The Chinese market is just very complicated for outsiders.