in aanvulling bron bloomberg :
Apple Backs Didi With $1 Billion in Blow to Uber in China
Lulu Yilun Chen
luluyilun
Alex Webb
atbwebb
May 13, 2016 — 4:28 AM CEST Updated on May 13, 2016 — 7:26 AM CEST
Share on FacebookShare on Twitter
Apple Invests $1B in China's Didi
Don't Miss Out — Follow Bloomberg On
Facebook Twitter Instagram YouTube
Recommended
Tesla Model S automobiles stand on raised cradles during driving unit and rear axle fitting on the final assembly line at the Tesla Motors Inc. factory in Tilburg, Netherlands, on Thursday, Oct. 8, 2015. Tesla said it delivered 11,580 vehicles in the third quarter, meeting its target after Chief Executive Officer Elon Musk handed over the first Model X sport utility vehicles just before the end of the period. Photographer: Jasper Juinen/Bloomberg
Tesla Needs Billions to Meet Musk's Ludicrous Assembly Timeline
Singapore Airlines Ltd. aircraft sit at Changi Airport in Singapore, on Thursday, March 3, 2016. Singapore Air, hurt by competition from opulent Middle Eastern carriers and a rash of budget airlines, is trying to revive its fortunes the way it knows best: wooing flyers with new aircraft. While the new aircraft with its extra-wide cabins and a new entertainment system will set Singapore Air apart from local rivals, it might be too little, too late to turn around its fortunes.
Singapore Air Rivals Squeeze for Passengers Amid Yield Drop
Liansheng Miao, chairman and chief executive officer of Yingli Green Energy, based in Baoding, China, stands for a portrait next to the company's new Panda solar panel at the Intersolar North America conference in San Francisco, California, U.S., on Wednesday, July 14, 2010. The conference, established in 2008, focuses on business opportunities in photovoltaics and solar thermal technology. Photographer: Ryan Anson/Bloomberg via Getty Images
Once a Billionaire, Miao Is Latest Humbled China Solar King
Richard Branson and Son Take on the Death Penalty
Uber’s larger rival gains new cash in battle for users
Apple is under pressure to find new sources of growth
Share on Facebook
Share on Twitter
Apple Inc.’s $1 billion investment in Didi is another blow to Uber Technologies Inc. in China, adding a powerful ally and bolstering a rival that already has a greater grip on ride-hailing services in the country.
The iPhone maker will help Didi build up a ride-sharing platform that handles more than 11 million rides a day and serves about 300 million users across China, Didi said in a statement on Friday. It joins other investors including Alibaba Group Holding Ltd. and Tencent Holdings Ltd., the country’s two largest Internet companies.
QUICKTAKE
The Sharing Economy
Uber is spending millions to try and catch Didi in China yet its business in the country is just a fraction of it’s local rival, which has reached break even in twice as many cities as Uber even operates in. Both companies are in an expensive battle for market share, raising capital needed to recruit drivers and subsidize customer fares.
“Didi’s a good partner to have, it’s a good operator, and could provide additional collaboration with Alibaba and Tencent,” said Chi Tsang, an analyst at HSBC Securities Asia Ltd.
Didi, formally known as Xiaoju Kuaizhi Inc., was created last year when separate apps backed by Tencent and Alibaba merged. It now operates in 400 Chinese cities with 14 million registered drivers, offering services from taxis and private cars to social ride sharing and test driving.
Uber, the world’s most valuable startup, has set a target of operating in 100 Chinese cities this year. The company has said its able to support its China push because its making $1 billion annual profit from its 30 largest global markets. Uber didn’t respond to e-mailed requests for comment.
Uber has been battling regulatory and legal issues since its founding. In California it agreed to shell out as much as $100 million to drivers, services in Sweden shut down amid a battle with regulators while its often met with protests from taxi drivers when it enters a new market.
Apple’s investment comes as the iPhone maker is under pressure to find other markets to expand in as its main smartphone business slows. Chief Executive Officer Tim Cook has highlighted higher-margin services as a growth area and suggested he would use some of its $200 billion-plus cash hoard for investments.
“Didi exemplifies the innovation taking place in the iOS developer community in China,” Cook said in the Chinese company’s statement. “We are extremely impressed by the business they’ve built and their excellent leadership team, and we look forward to supporting them as they grow.”
Didi has been in the process of raising more than $2 billion at a valuation of about $25 billion, people familiar with the matter have said.
The company is Uber’s most potent rival and has formed an international coalition with Lyft Inc. in the U.S., India’s Ola and Southeast Asia’s Grab to fight the globally expanding San Francisco firm.
Before it's here, it's on the Bloomberg Terminal.