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Apple Invests $1 Billion in Uber’s Chinese Rival

The investment made by the Silicon Valley superpower goes to Uber's biggest rival in China, Didi Chuxing, which serves around 90 percent of China's car-hailing service market.

by Joanna Chiu, dpa, Hamburg, Germany / May 13, 2016
Apple CEO Tim Cook at the company's product launch on Sept. 9, 2014. via Flickr/DownloadsourceES

(TNS) -- Apple on Friday said it has invested 1 billion dollars in Chinese ride-hailing company Didi Chuxing, a move that comes as Apple's sales in its second-largest market are falling.

"We decided to make the investment for a number of strategic reasons, including the chance to learn more about certain segments of the China market," Apple chief executive Tim Cook told Xinhua news agency.

Didi Chuxing, formerly known as Didi Kuaidi, said in a statement that this is the single largest investment the company has ever received.

Didi Chuxing is also backed by Chinese internet giants Alibaba and Tencent.

The company said it serves around 90 percent of China's car-hailing service market.

Analysts said the investment would increase pressure on Uber, a San Francisco-based company that is pushing for more market share in China.

"This investment is a two-way mutual win," said Wang Qingrui, a Chinese technology analyst.

"Didi is more than happy to accept this investment. Not only will their brand awareness be exposed to the international market, they can better compete with Uber.

"For Apple, it is a strategic choice as Didi is related to the car business, and its market value is climbing, so it is good timing to invest in Didi. Apple may look to increase Didi's expansion in Chinese and international markets," Wang told dpa.

©2016 Deutsche Presse-Agentur GmbH (Hamburg, Germany) Distributed by Tribune Content Agency, LLC.

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