Apple Invests $1 Billion in Didi Chuxing, the ‘Uber’ of China

Jennifer van der Kleut

Apple made a decision last week that has many industry experts scratching their heads-they announced the company has invested $1 billion in a ride-hailing company called Didi Chuxing, which many call the Uber of China.

It’s an unprecedented move that has left many asking, why?

The Washington Post has two theories.

Firstly, the Post explains that Apple has billions in revenue tied up overseas, and bringing that money back to the U.S.-such as, by investing in an American company-would come with a costly tax bill.

Secondly, we’ve all heard the rumors that Apple is quietly working behind the scenes to nab a piece of the driverless transportation pie. By investing in Didi Chuxing, Apple is looking toward making progress on that goal.

There’s even a third reason. Didi Chuxing has made no secret of their goal of surpassing other countries like the U.S. when it comes to automotive and technological innovation. By partnering up with Didi Chuxing, Apple is joining forces with one of its biggest potential competitors, as China is second only to the U.S. in those industries.

Xinhua Finance Agency reports that Didi Chuxing completed 1.43 billion rides in China in 2015.

The Post also theorizes that Apple’s monumental investment in a Chinese company will help ease tensions with the Chinese government. Just last month, Apple’s iTunes and iBooks stores were shut down across China over regulatory arguments. In addition, sales of Apple iPhones in Asia have declined by at least 26 percent in the past year.

Though Apple has been largely silent as to their reasons behind the $1-billion investment, CEO Tim Cook did tell Reuters, “We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market.”