Apple invests $1 billion in China’s car-hailing app

May 13, 2016, 4:59 AM EDT
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In a bid to gain a deeper insight in the critical Chinese market, Apple Inc. invested $1 billion in a ride-hailing app, Didi Chuxing, which claims to have 87 percent market share in China. The company, which is backed by internet giants Tencent and Alibaba, provides 11 million rides a day, a number several times higher than the U.S. rival Uber’s figures in the country.

The biggest investment in the history of Didi Chuxing could fuel the expansion of the company in addition to providing it a competitive edge over other apps, writes the BBC. On the other hand, Uber’s abysmal performance in China continues, with an annual loss of more than $1 billion.

For many analysts, Apple’s latest move sheds light on how the company plans to diversify its business as iPhone sales level off, notes Reuters. With the company hiring a number of automotive experts recently, investors say they are excited to see whether Apple enters the automotive business.

Apple recently suffered a huge setback in its second-biggest market China, when regulatory bodies banned the company’s online book and movie services in the country.

TAGS: Apple Inc.