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There were a few ideas floating around Chinese tech blogs, of the most possible reasons are: 1. Integrate Apple Pay into Didi Chuxing apps, which is estimated

by devy 10y ago

There were a few ideas floating around Chinese tech blogs, of the most possible reasons are: 1. Integrate Apple Pay into Didi Chuxing apps, which is estimated to have 300MM users in China[1]. Didi currently only accepts payment with Weixin(aka WeChat) Pay and Ali Pay (aka Ant Financial Services Group, owned by Alibaba Group). 2. Massive data points for developing Apple's self-driving technology. Didi operates in 400 Chinese cities with over 11 million rides per day, and accounts for 80% private car hailing market and 99% taxi hailing market.[2] 3. And yes, investing into Chinese tech sector give them a better leverage in negotiations with the government and also like sbuccini said, association with other Didi's major investors. [1]: http://www.theverge.com/2016/5/12/11669178/apple-invests-1-billion-in-chinese-transportation-service-didi-chuxing http://www.theverge.com/2016/5/12/11669178/apple-invests-1-b... [2]: https://en.wikipedia.org/wiki/Didi_Chuxing https://en.wikipedia.org/wiki/Didi_Chuxing

panpanxu 10y ago
For the second point, i wonder if there is any potential restriction on transferring this kind of data to US ...
- yompers888 10y ago
  The juxtaposition of this possible use of data by Apple (as an investor) with Chinese state-sponsored large-scale theft of technical data by security breach is wonderful.
- foxhedgehog 10y ago
  I assume that this acquisition would also be a natural consumer of any future car technology developed by Apple
  - nxzero 10y ago
    Apple didn't acquire they company, they invested in it; Didi valuation is in the 10s of billions, besides, buying them out right would have less value to Apple.
uola 10y ago
Don't forget that not only is the chinese market huge, and one of the few where there's limited competition from other western companies, it's greatly positioned for the needs of rising economies. Especially if IOT takes off. If you have just become middle class in africa, asia or india you're going to buy bang-for-buck chinese appliances. That, while the west as arguing about standard and market capture, are all going to (might, at least) be fitted with cheap wifi chips in a few years.
WiLLGuys 10y ago
Dependable analysis.
jusben1369 10y ago
Agree with all 3. Just think the ordering would be from 3 to 1. And not just massive data points but an actual big built in customer for your self driving vehicles.
contingencies 10y ago
1. Maybe partly, but 1B USD seems a lot to pay for that. 2. Self-driving is not going to happen in China the way it happens in the US. The roads are full of pedestrians, e-bikes, people breaking any sort of nominal rule or law... it's too accident prone. Plus you have the extra challenges of the politically accuracy-challenged navigation systems. No, I don't think this reason floats. 3. Maybe partly. Locking down stable long term CNY income via a one time USD investment seems like it could even be seen as long term corporate tax planning.
- lost_name 10y ago
  Re: 2; Perhaps Apple is thinking that this is the hard part. Nailing down the most difficult areas of self driving cars will both give them the market in China/India or other areas with similar traffic, and also leaving the "easy stuff" for last, which will only need to be supplemental.
  - tedd4u 10y ago
    #2 sounds like San Francisco ...
    - abritinthebay 10y ago
      You need to drive outside of the US. Try New Dehli. SF is busy, has tourists, and asshole taxis, but is just a normal city. Delhi has 6 lanes if fluid traffic that mixes like a stream, cows walking the wrong way, elephants, tuk tuks that have heard of this thing you call lanes and find it a silly idea, and pedestrians that show no fear and believe they are made of iron. China can be very similar.
    - abritinthebay 10y ago
      You need to drive outside of the US. Try New Dehli. SF is busy, has tourists, and asshole taxis, but is just a normal city. Delhi has 6 lanes if fluid traffic that mixes like a stream, cows walking the wrong way, elephants, tuk tuks that have heard of this thing you call lanes and find it a silly idea, and pedestrians that show no fear and believe they are made of iron. China can be very similar.

by devy 10y ago

panpanxu 10y ago

For the second point, i wonder if there is any potential restriction on transferring this kind of data to US ...

yompers888 10y ago
The juxtaposition of this possible use of data by Apple (as an investor) with Chinese state-sponsored large-scale theft of technical data by security breach is wonderful.
foxhedgehog 10y ago
I assume that this acquisition would also be a natural consumer of any future car technology developed by Apple
- nxzero 10y ago
  Apple didn't acquire they company, they invested in it; Didi valuation is in the 10s of billions, besides, buying them out right would have less value to Apple.

uola 10y ago

Don't forget that not only is the chinese market huge, and one of the few where there's limited competition from other western companies, it's greatly positioned for the needs of rising economies. Especially if IOT takes off. If you have just become middle class in africa, asia or india you're going to buy bang-for-buck chinese appliances. That, while the west as arguing about standard and market capture, are all going to (might, at least) be fitted with cheap wifi chips in a few years.

WiLLGuys 10y ago

Dependable analysis.

jusben1369 10y ago

Agree with all 3. Just think the ordering would be from 3 to 1. And not just massive data points but an actual big built in customer for your self driving vehicles.

contingencies 10y ago

1. Maybe partly, but 1B USD seems a lot to pay for that. 2. Self-driving is not going to happen in China the way it happens in the US. The roads are full of pedestrians, e-bikes, people breaking any sort of nominal rule or law... it's too accident prone. Plus you have the extra challenges of the politically accuracy-challenged navigation systems. No, I don't think this reason floats. 3. Maybe partly. Locking down stable long term CNY income via a one time USD investment seems like it could even be seen as long term corporate tax planning.

lost_name 10y ago
Re: 2; Perhaps Apple is thinking that this is the hard part. Nailing down the most difficult areas of self driving cars will both give them the market in China/India or other areas with similar traffic, and also leaving the "easy stuff" for last, which will only need to be supplemental.
- tedd4u 10y ago
  #2 sounds like San Francisco ...
  - abritinthebay 10y ago
    You need to drive outside of the US. Try New Dehli. SF is busy, has tourists, and asshole taxis, but is just a normal city. Delhi has 6 lanes if fluid traffic that mixes like a stream, cows walking the wrong way, elephants, tuk tuks that have heard of this thing you call lanes and find it a silly idea, and pedestrians that show no fear and believe they are made of iron. China can be very similar.
  - abritinthebay 10y ago
    You need to drive outside of the US. Try New Dehli. SF is busy, has tourists, and asshole taxis, but is just a normal city. Delhi has 6 lanes if fluid traffic that mixes like a stream, cows walking the wrong way, elephants, tuk tuks that have heard of this thing you call lanes and find it a silly idea, and pedestrians that show no fear and believe they are made of iron. China can be very similar.