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Apple ( AAPL ) will invest $1 billion in Uber’s China ride-hailing rival Didi Chuxing, backed by Chinese Internet giants Alibaba ( BABA ) and Tencent ( TCEHY ). Apple CEO Tim Cook told Reuters the move will help it better understand the Chinese market. “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. Didi Chuxing, formerly known as Didi Kuaidi, is the dominant ride-hailing service in China, operating in more than 400 cities. Didi Chuxing said Apple’s $1 billion stake is its largest investment ever. Uber also is expanding heavily in China, teaming up with Baidu ( BIDU ), the third member of the Baidu-Alibaba-Tencent trio of Chinese Internet giants. Didi also has alliances with U.S.-based Lyft, India’s Ola and SE Asia’s Grab. The effort also could help develop an Apple Car. Apple has never confirmed plans to build an electric vehicle with some autonomous elements, but has hired dozens of automotive engineers for “Project Titan.” Currently, Apple’s public auto efforts are focused on CarPlay, an infotainment service linked to the iPhone. Cook said: “That is what we do today in the car business, so we will have to see what the future holds,” he said. Apple shares closed 2.35% to 90.34 on the stock market today, hitting its lowest levels since June 2014. Apple also lost its crown as the most valuable company to Google parent Alphabet ( GOOGL ). Scalper1 News
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