Apple Invested $1 Billion in Uber’s Chinese rival
Apple has invested $1 billion(£693m) in Didi Chuxing, Uber’s biggest car-hailing competition in China.
Chief executive Tim Cook said that the move will help the firm to better understand the Chinese market.
Didi Chuxing, previously known as Didi Kuaidi, is said to control most of the Chinese market for car-hailing services.
Didi Chuxing was attempting to raise funding at a valuation of $25 billion USD.
Apple’s investment might hint at the Cupertino-based company’s long-rumored plans to get into the automotive business: Uber is investing heavily in self-driving car technology, and Apple’s investment in Didi might be a way for the company to head it off at the pass.
Cook is still downplaying Apple’s car ambitions, for now.
Didi Chuxin says it provides more than 11 million rides a day, giving it 87% of the Chinese market share.
The move was widely seen as a blow to Apple which is keen to ensure its products are popular and sell well in China, because it is the second biggest market for its products.
In April, Apple for the first time since 2003 saw its revenues fall and China was marked out as a particular weak spot.
And also shares of Apple have fallen below $90 (£62) for the first time in nearly two years amid investors’ concerns about slumping sales of iPhones.
Apple’s stock price fell 3.3% to $89.47 during afternoon trading, leaving its market valuation at $494bn. However, it later recovered slightly, closing 2.4% down at $90.34.