Apple quits board of Chinese ride-hailing firm Didi

AppleInsider

Six years after Apple invested $1 billion in China's Uber-like Didi Global company, its representative has quietly left the board.

Didi Global bought out Uber China in July 2019 for $1 billion, and later that year, Apple invested the same amount in the company. As part of that deal, Apple got to put its vice president of corporate development, Adrian Perica, onto the Didi board.

According to Bloomberg, Perica has now left the board and does not appear to have been replaced by any other Apple executive. Although the news has only now been revealed, Perica actually quit the board on August 4, 2022.

Bloomberg reports that Didi has had a tumultuous year, including being fined $1.2 billion by the Chinese government. That was reportedly to do with alleged infractions compromising national security.

Didi also went ahead with a US public offering in June 2021, despite the Chinese government's objections. As a result, it's said that China's mobile stores have dropped the Didi app, although it appears to still be available on the App Store.

There has, though, been a sufficient reduction in the app's general availability that growth has stalled, and its market value has dropped by over 80%.

Apple has not commented publicly, and nor has Didi, beyond a one-line notice on its website.

Read on AppleInsider

9secondkox2

It’s a good start. 

gatorguy

In hindsight it's easy to understand why it wasn't a good investment of a $Billion, but I don't know that anyone at the time had an inkling of how relations between China and the US would devolve. Maybe it was as simple as Apple believing it might buy its way into the Chinese government's good graces by investing in the Chinese economy. 

waveparticle

gatorguy said:

In hindsight it's easy to understand why it wasn't a good investment of a $Billion, but I don't know that anyone at the time had an inkling of how relations between China and the US would devolve. Maybe it was as simple as Apple believing it might buy its way into the Chinese government's good graces by investing in the Chinese economy. 

Apple did not see that US will launch a trade war. And it gained bipartisan support with no end in sight. 

entropys

While the feelings of government may be all from the Chinese perspective, US corporations are a tad more independent, if not having the ability to influence government.

Rather than thinking government relations are all, maybe Apple has discovered that it has nothing to gain from the relationship. Maybe it thought it could do a Sergei Brin and milk tech info from Dido, only to discover there wasn’t any thing it didn’t already know, or maybe Apple discovered the Dido Board had the exact reverse plans for Apple.

maybe neither had much to offer the other except potential conflicts of interest.

edited August 2022

mpantone

entropys said:

While the feelings of government may be all from the Chinese perspective, US corporations are a tad more independent, if not having the ability to influence government.

Rather than thinking government relations are all, maybe Apple has discovered that it has nothing to gain from the relationship. Maybe it thought it could do a Sergei Brin and milk tech info from Dido, only to discover there wasn’t any thing it didn’t already know, or maybe Apple discovered the Dido Board had the exact reverse plans for Apple.

maybe neither had much to offer the other except potential conflicts of interest.

Well, there's no mention about Apple divesting from Didi Global. As far as anyone here knows, Apple is still a major shareholder of Didi.

If you have so much invested in a company, wouldn't you want a voice on how the company is run? After all, it was your money you gave to them.

And this leads to the next question: where is Perica now?

Very peculiar.

edited August 2022

danox

gatorguy said:

In hindsight it's easy to understand why it wasn't a good investment of a $Billion, but I don't know that anyone at the time had an inkling of how relations between China and the US would devolve. Maybe it was as simple as Apple believing it might buy its way into the Chinese government's good graces by investing in the Chinese economy. 

Aren’t there more active iPhones in China than the USA today? Apple’s Japan marketshare is very high, and Apple’s share in Korea is inching up slowly. Aside from Japan the most Apple can expect is a strong presence at the high end of the market in east Asia.

Apple’s Didi investment was a Art of War move….Long term good will. The Opium War, Boxer Rebellion, and Perry days are over the coin appears to have flipped. 

filemakerfeller

I remember reading a rumour somewhere that Apple was strong-armed into this deal by the Chinese government. If that's true, Apple may have viewed it as a cost of doing business and has reached a point where they don't see any future value from continuing an active involvement with Didi.

gatorguy

mpantone said:

entropys said:

While the feelings of government may be all from the Chinese perspective, US corporations are a tad more independent, if not having the ability to influence government.

Rather than thinking government relations are all, maybe Apple has discovered that it has nothing to gain from the relationship. Maybe it thought it could do a Sergei Brin and milk tech info from Dido, only to discover there wasn’t any thing it didn’t already know, or maybe Apple discovered the Dido Board had the exact reverse plans for Apple.

maybe neither had much to offer the other except potential conflicts of interest.

Well, there's no mention about Apple divesting from Didi Global. As far as anyone here knows, Apple is still a major shareholder of Didi.

If you have so much invested in a company, wouldn't you want a voice on how the company is run? After all, it was your money you gave to them.

And this leads to the next question: where is Perica now?

Very peculiar.

Having lost 80% of the company's value (so far) I'll guess Apple no longer sees benefits to continuing as a guiding board member and therefor at least partially responsible for that loss of value.