Ride-hailing services, similar to that of Uber and Lyft, are quite the rage these days, and one company has just seen a big boost from Apple.
That company is the transportation service known as Didi Chuxing, based in China. According to the report, which was published by Reuters, Apple’s investment of $1 billion in Didi Chuxing is, in part, a way for Apple to better understand China, which is the second-largest market for Apple following the United States, as Tim Cook tells the publication:
“We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market. Of course, we believe it will deliver a strong return for our invested capital over time as well.”
Didi Chuxing was previously known as Didi Kuaidi, and this $1 billion investment from Apple is the largest the company has ever received. Which is fitting, because Didi Chuxing is the biggest transportation service of its kind in China, holding upwards of 87 percent of the total market.
Apple’s focus on automobiles is hard to ignore these days, not only starting with its CarPlay infotainment system, but also with a bevy of rumors suggesting the Cupertino-based company is working on an Apple Car. That rumor resurfaced with an analyst’s report that suggested Apple’s big spike in R&D spending is a sign that the Apple Car is on the way.