Didi to invest US$1b to re-brand one-stop car services business
CHINA’S leading ride-hailing service provider Didi Chuxing said yesterday it will invest US$1 billion in its auto services business as part of its efforts to re-brand the unit.
The funding for the new business unit, called Xiaoju Automobile Solutions, will be used to support its business in providing Didi drivers and the broader car-owner community with convenient, flexible, economical, and reliable one-stop auto services.
Didi’s services, which includes auto leasing, car maintenance and gas station services, are now available in 257 cities in a network of over 7,500 partners and distributors.
Didi said these services contribute about 60 billion yuan (US$8.79 billion) a year.
The move came after Didi’s shift towards the expansion of its revenue stream beyond carhailing to include more services for car owners, automobile companies and auto communities.
“The creation of Xiaoju Automobile Solutions is not only a key step towards achieving Didi’s automobile alliance strategy, but also a milestone in organizational innovation as we continue to expand our business horizon,” said founder, chairman and CEO of Didi Chuxing Cheng Wei.
“In the future, Didi will continue a win-win collaborative network with partners throughout the automotive industry chain to build a new transportation ecosystem designed for a future of shared mobility,” he added.
Didi started offering auto services in 2015 and this April launched a unified service platform, which started out with 30 million Didi drivers, and has been striving to develop a onestop auto solution platform.
It also serves as a crucial extension of Didi’s overall automotive strategy to target not only riders and drivers, but also the automobile industry chain covering pre-sale and after sale processes.