Apple invests $1B in Chinese version of Uber

Apple made an investment this evening. And it has nothing to do with iPhone. This news should remind the market that Apple is flush with cash, and can explore rather interesting large-scale opportunities when they arise. They just hadn’t before. Until now. Apple is investing $1B in Didi, the Chinese equivalent of Uber.

Rumors have long been that Apple is interested in the EMV self driving car market. It has also been speculated that Tesla may eventually pair with Uber in some way to create this experience in the future.

To me, news of Apple entering into the ride hailing market further bolsters the speculation of Apple eventually producing a self-driving car. The investment in Didi is as good a means as any to gain entry into the market. The full article that details the news piece is here:

And here are a few highlights:

The investment gives Apple, which has hired dozens of automotive experts over the past year, a sizeable stake in Uber Technologies Inc’s chief rival in China. Cook said in an interview that he sees opportunities for Apple and Didi Chuxing to collaborate in the future.

“We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market,” he said. “Of course, we believe it will deliver a strong return for our invested capital over time as well.”

Didi Chuxing, formerly known as Didi Kuaidi, said in a statement that the funding from Apple was the single largest investment it has ever received. The company, which previously raised several billion dollars, dominates the ride-sharing market in China. The company said it completes more than 11 million rides a day, with more than 87 percent of the market for private car-hailing in China.

Investors are eagerly watching to see whether Apple will enter the automotive business. Apple has hired a wide range of automotive experts, and the company is exploring building a self-driving car, sources have told Reuters.

Cook said Apple remains focused on the in-car experience with its CarPlay system that links smartphones to vehicle infotainment systems.

“That is what we do today in the car business, so we will have to see what the future holds," he said.

Didi completes 11 million rides a day. That number alone is mind-blowing, but when you look at a future incarnation of that with self driving cars - incomprehensible.




Thanks for bringing this to light. 11 million rides per day certainly is an impressive number.

I wonder how much Didi generates per ride? $1 per ride is $4B in revenue and one can move up and down from there.
Who knows what the costs associated with providing said ride are.

At any rate, I’m sure we will hear two things:

#1 - This is Apple simply trying to do something to excite investors while its core product tanks and will never be bought again!

#2 - This is a ploy in order to satisfy the Chinese government over the recent i"something" issues.

Or, feel free to enter other patently absurd, conspiracy theorist comments.

A.J. (curmudgeon)

A.J. great thoughts.

But there may be even more to think about here.

I found another article that got bumped up to the top for relevancy. It was a year-old article that got re-updated tonight. Take a look:…

More food for thought.



Completely agree there is more to think about.
I happen to believe Tim Cook is a pretty smart guy and has a reason for his maneuvers. This is a small sum of money for Apple likely paid for with overseas funds.

Every move Tim Cook makes isn’t perfect, but we shouldn’t automatically assume it’s worthless either.

Thanks again for posting this. I find it an interesting move by Apple. Last time I checked, China has a decent size population and Apple’s entree to the market wasn’t exactly an unmitigated disaster.

Take care,