The Deal Will Help Apple Better Understand China
Apple is taking a big leap to better understand China’s market by investing $1 billion in Chinese Uber-like service “Didi Chuxing.”
Aside from the purpose of understanding the Chinese market, Apple CEO Tim Cook said the investment is on the right track as the company is venturing into cars and auto technology.
“In case you forgot, Apple is also looking into cars, making several moves in auto technology – this could help in this regard.” – Tim Cook
Cook is optimistic that the deal will offer opportunities for Apple and Didi Chuxing to collaborate in the future.
In addition, the deal will boost US-China’s economic relations that have been strained by differences.
Apple Looking into Cars
The Chinese ride-hailing firm dominates the ride-sharing market in China and it is valued at over $25 billion. According to Reuters, it has 87 percent of the market of private car hailing across China.
So what’s the big deal? Apple has recently disclosed its interest in cars. News leaked that Apple has even hired automotive experts, and is even venturing on an ambitious goal to build a self-driving car. That is why investing in Didi is a smart move for the tech giant.
“That is what we do today in the car business, so we will have to see what the future holds.” – Tim Cook
The Uber of China
If Uber has made a hype in the United States, China too has Uber-like service. And, it is a booming business. Didi is the result after China’s two biggest ride-hailing services, Didi and Kuaidi, merged together.
The company is so popular that it completes more than 11 million rides a day.
Apple Optimism About the Investment
Tim Cook sees the upside beyond the horizon amidst the fact that Apple’s sales in China have experienced downfalls. The Apple CEO emphasized he remains confident in the market.
Cook said, the deal “reflects our excitement about their growing business … and also our continued confidence in the long term in China’s economy.”