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Apple Invested 1B, Didi Swallowed ChinaUber

Reuters recently reported that Apple’s investment of 1 billion dollar in China for newly launched ride sharing company Didi Chuxing has washed out Uber from that country. In return Didi has acquired Uber for 20% shareholding . At the same time Apple invested in Didi in the month of May, Didi started the process of obtaining UberChina. Moreover Didi was funded by Chinese technical companies like Alibaba and Tencent along with Apple. This whole thing dominated Uber in a huge way that they lost the battle.

Apple Invested 1B, Didi Swallowed ChinaUber

So Uber just gave up its independent journey from the road of China, defeated by three tech giant companies, surrendered themselves to Didi with the agreement of almost one fifth stake return. The investment of Apple is the main factor, though to force Uber out of the riders’ zone, somebody from the companies said in a private discussion. Investment on Apple’s part

An Uber analyst Jan Dawson, said in Jackdaw Research that Apple’s huge investment in Didi prompted Uber authority to think deeply in going for any kind of further deal in China. He also added that Uber and Apple both are good partners in other markets, from the past, but from this very incident of taking full side with Didi, Apple has shown the red flag to Uber in future negotiation.

The huge profits made in USA, Canada, and other countries by Uber were invested in China to maximize its market in this country, though, after Didi swallowing Uber, may lead to tight warbetween Apple and Uber in future, one analyst suggests.

Uber and Apple share some sort of relationship like Uber passengers sometimes pay through Apple pay, Uber supplies drivers with iPhones. But Uber is trying to establish a deeper partnership with Apple, some investors said. After alignment of Didi and Uber, such doors may open up, said the managing partner of GGVCapital Hans Tung.

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