Foxconn invests in Chinese ride-hailing startup Didi Chuxing
09 September 2016
Foxconn Technology Group, the world's largest electronics manufacturer, yesterday said that it has invested $119.9 million in Chinese ride-hailing company Didi Chuxing, in a deal that could value the start-up at about $33.7 billion.
The investment made though Foxconn's unit Forteq Holdings Inc, will give it a 0.355 per cent stake in Didi Chuxing, Foxconn said in a regulatory filing to the Taiwan Stock Exchange.
The investment comes just a few days after Beijing-based Didi Chuxing agreed to buy its rival Uber China in a deal in a $35 billion deal that gave Uber a minority stake in the company. (See: Uber to sell China subsidiary to rival Didi in $35 bn deal) It also comes four months after Apple invested $1 billion in Didi, since the maker of iPhones is expected to enter the automotive business by building an electric car.
The Foxconn deal marks the latest investment in Didi, which now counts companies like Apple Inc, Alibaba Group Ltd, Uber Technologies, Ant Financial, China Life Insurance, China Investment Corporation, Temasek Holdings, SoftBank and others as its investors.
Foxconn, one of the biggest assembler of Apple devices, said that the transaction was part of a broader effort to build products and services for the Internet of Things.
Didi said in a statement that the investment would help it advance its technology. "With the support of Foxconn and other value investors home and abroad, Didi will continue to push the frontier of innovation for the mobile transportation market and create ever stronger driver and rider communities.''
''Both Didi and Foxconn are focused on innovation and execution. We are exploring possibilities, but there are no concrete plans for cooperation yet,'' the statement added.
Founded in 2012, Didi Chuxing is the world's largest mobile transportation service platform, offering a broad range of mobile technology-based transportation options across over 400 major Chinese cities, including taxi hailing, private car hailing, social ride-sharing, chauffeur, DiDi Bus, DiDi Test Drive, and DiDi Enterprise Solutions.