Roger Fingas
Apple's surprise $1 billion investment in Chinese ridesharing service Didi Chuxing was forged in just 22 days, and the two companies are now in talks in several fields, a report said on Friday.
The ball began rolling during a meeting with Apple CEO Tim Cook on Apr. 20 at his company's Cupertino headquarters, Didi president Jean Liu told Bloomberg. A separate source told the site that Liu didn't intend to ask for capital at the meeting, but was instead looking to discuss the Chinese market and possibilities for cooperation.
In the wake of Apple's investment, the two firms are now in talks on cooperation in sectors including products, marketing, and technology, according to Liu.
"It feels very natural to work with Apple together because philosophically on a company level we share a lot in common," she said.
Other Bloomberg sources indicated that Apple's $1 billion influx brings the total in Didi's current round of funding to $3 billion. The company is seeking a valuation of $26 billion, which would make it the world's fourth-most valuable startup.
Apple's exact interest in Didi Chuxing — beyond a direct return on investment — is uncertain. Cook said that the deal was made "for a number of strategic reasons," among them "a chance to learn more about certain segments of the China market."
Apple is believed to be working on an electric car for launch in 2019 or 2020. That model, or more likely a later one, could be self-driving. A deal with Didi may be connected, whether Apple is simply looking to glean information, or angling at having its vehicles in Didi's fleet. Rival ridesharing service Uber has regularly expressed interest in switching to self-driving vehicles.
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41 Comments
Not 1 comment? This is an important event and a serious clue that Apple in electric and self driving cars for the long haul. Also will help assuage relations with Chinese Officials which is as necessary in China as it is in any other Country. Especially in the good old USA.
watch this video from 43:20 : https://www.youtube.com/watch?v=eoqJGVEkQhE get a batter idea about Didi vs Uber vs Lyft also: http://www.recode.net/2016/5/2/11634188/global-ridehail-alliance-uber-alibaba
Smart, on multiple levels
Horace at Asymco did a podcast a while back on how transportation is evolving with tech. This is an excellent move by Tim on so many levels,
Having a little firsthand knowledge of the depths of corruption at work in China, I may be one of the few here who views this entanglement with a politically-connected Chinese business with skepticism. In my experience, foreign money invested in unaccountable Chinese companies tends to suddenly vanish with little recourse. I see Tim's reliance on China for Apple growth as riskier and riskier. What happens when Trump becomes president and opens up a full on trade war with China? The odds that Apple will be punished increase severely.