Apple’s decision to invest $1 billion in “Chinese Uber” Didi Chuxing earlier this year is proving a smart move after the company bought out the real Uber in China — bringing an end to what was proving to be a costly and bitter battle over the Chinese lift-sharing market.
As part of the deal, Didi will buy Uber’s “brand, business and data” in the country, according to a report from Bloomberg, in exchange for a 20 percent stake in the combined company for Uber and its shareholders.
Uber had been spending upwards of $1 billion each year in an attempt to gain traction in China.
“Didi Chuxing and Uber have learned a great deal from each other over the past two years,” said Cheng Wei in a statement. “This agreement with Uber will set the mobile transportation industry on a healthier, more sustainable path of growth at a higher level.”
According to sources familiar with the deal, Didi’s post-deal valuation is likely to be around $35 billion. You can read more about Didi Chuxing in our recent profile piece here.
When Apple’s $1 billion investment in Didi Chuxing was announced back in May, Tim Cook said that the deal “reflects our excitement about their growing business … and also our continued confidence in the long term in China’s economy.”
The deal also possibly gave Apple additional data and strategic insights that can benefit it in terms of Apple Pay and a possible Apple Car. From the sound of things, that data just got a lot more valuable!