Apple invests $1bn in Uber’s biggest rival

Apple announced yesterday that it has invested $1bn in Chinese ride-hailing giant Didi Chuxing, which also happens to Uber’s largest global rival, in a move that Apple CEO Tim Cook says will help the company better understand the Chinese market. The investment gives Apple a stake in two vital growing markets, the sharing economy and car technology, and has been confirmed as Didi’s single largest ever investment. The market has long been full of rumours regarding how Apple may eventually enter the automotive business, with analysts stating the Didi deal shows that Apple are not just thinking about cars, but business models around transportation, and as sales of iPhones have recently started to level off, transportation services could prove to be a profitable new income stream. However, various reports are emphasising that the deal is focussed just as much on continuing warm relations with the Chinese government as it is about investing in the growing rideshare market. It is also worth remembering that Didi is backed by Chinese tech giants Alibaba and Tencent, which could clearly be very useful collaborators for Apple.

A taxi driver is reflected in a side mirror as he uses the Didi Chuxing car-hailing application in Beijing. Photo: Reuters