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:
http://www.reuters.com/article/us-apple-china-idUSKCN0Y404W
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.
Best,
–Kevin