Flush with Apple cash, Didi Chuxing planning US IPO as soon as 2017 - report

Posted:
in General Discussion
Hot on the heels of Apple's $1 billion investment, Chinese ridesharing service Didi Chuxing is hoping to launch an initial public offering in the U.S. stock market in 2017, a report said on Monday.




The precise timing will depend on Didi's current competition with Uber, sources told Bloomberg. Indeed Didi Chuxing was created in a merger between two earlier companies, Didi Dachi (backed by Tencent) and Kuaidi Dache (backed by Alibaba), orchestrated partly to fend off Uber's entry into China, though also because their own competition was generating losses.

Uber has been sinking large sums of money to gain a foothold in China, where Didi Chuxing is the dominant ridesharing service in terms of both reach and profitability. Whereas the latter is already past the break-even point in about half of the 400 Chinese cities in which it operates, Uber may only reach 100 cities in the country later this year, and is still losing money there.

For its IPO, Didi Chuxing has yet to decide which banks to hire, or even on which stock exchange it would want to sell through, the Bloomberg sources commented. Nevertheless, it could potentially achieve the biggest U.S. IPO by a Chinese company since Alibaba in 2014. Did is currently raising about $3 billion in funding -- including Apple's money -- and now has a valuation of $26 billion.

Apple has been vague on the reasons for its investment. CEO Tim Cook initially said that it was "for a number of strategic reasons," such as "a chance to learn more about certain segments of the China market." During a visit to Beijing earlier today however, he added that Didi "has a very great management team," and that "its [Didi's] objective is also environmental," reducing pollution by making more efficient use of cars.

Apple is believed to be developing an electric car for launch in 2019 or 2020. It could potentially sell vehicles into the Didi fleet, especially if and when an "Apple Car" becomes self-driving. Alternately, Apple might simply want to use information from Didi to inform its plans.

Comments

  • Reply 1 of 10
    Didi has already denied this rumor:

    http://techcrunch.com/2016/05/15/didi-chuxing-chinas-largest-taxi-on-demand-firm-denies-plan-for-u-s-ipo-in-2017/

    I should get paid for fact checking AppleInsider articles ;)
    caliireland
  • Reply 2 of 10
    JinTechJinTech Posts: 400member
    I think it's rather obvious. Didi will be using CarPlay from now on. CarPlay has Apple Maps. Apple Maps will collect map data from all over China. Apple Maps data will be used to help with Apple's map data when they launch their own cars. Something I think CarPlay has been doing since launch. 
    cali
  • Reply 3 of 10
    teejay2012teejay2012 Posts: 280member
    JinTech said:
    I think it's rather obvious. Didi will be using CarPlay from now on. CarPlay has Apple Maps. Apple Maps will collect map data from all over China. Apple Maps data will be used to help with Apple's map data when they launch their own cars. Something I think CarPlay has been doing since launch. 
    Just there in China, and while many use iPhones, they tend to use Baidu maps on them.
    ireland
  • Reply 4 of 10
    lukeilukei Posts: 333member
    For those expecting Apple or Tesla to launch cars under their own brands in China you may want to check out the small but significant change China has made ref EVs. Unlike normal cars EVs have to be sold under a local brand name.  
  • Reply 5 of 10
    levilevi Posts: 344member
    Didi has already denied this rumor:

    http://techcrunch.com/2016/05/15/didi-chuxing-chinas-largest-taxi-on-demand-firm-denies-plan-for-u-s-ipo-in-2017/

    I should get paid for fact checking AppleInsider articles ;)
    Yes because thier denial makes it untrue 
  • Reply 6 of 10
    levi said:
    Didi has already denied this rumor:

    http://techcrunch.com/2016/05/15/didi-chuxing-chinas-largest-taxi-on-demand-firm-denies-plan-for-u-s-ipo-in-2017/

    I should get paid for fact checking AppleInsider articles ;)
    Yes because thier denial makes it untrue 
    I highly doubt they would deny something that's gonna happen in a year..
    ireland
  • Reply 7 of 10
    gatorguygatorguy Posts: 21,293member
    JinTech said:
    I think it's rather obvious. Didi will be using CarPlay from now on. CarPlay has Apple Maps. Apple Maps will collect map data from all over China. Apple Maps data will be used to help with Apple's map data when they launch their own cars. Something I think CarPlay has been doing since launch. 
    I'll personally be very surprised if Apple is allowed to gather its own map data in China, at least without that data being examined-on-demand and vetted by Chinese authorities. 

    EDIT: And that appears to be accurate. In Dec. last year the Chinese government put new rules in place. Besides requiring that any map data from China be stored in China

    "...the purpose of the new regulations is to “boost development of the geographic information industry” and safeguard “national sovereignty and geographic information security.”

    The rules seem much heavier on tightening control than on boosting development. In addition to the server location requirements, map providers are prohibited both from displaying or even storing any data deemed to be prohibited by the government. Government officials will be able to regularly inspect data for “errors and leaks of information that threaten national sovereignty,” according to Xinhua."


    FWIW DED ran an article some months back where he proclaimed surprise at how good Apple Maps in China proper were compared to Hong Kong. There's a reason for that. Apple uses AutoNavi maps there. 

    edited May 2016
  • Reply 8 of 10
    calicali Posts: 3,495member
    Amazing if true.

    I'd suggest Apple invest another billion if/when they enter the U.S. to jump start the company here.
    edited May 2016
  • Reply 9 of 10
    irelandireland Posts: 17,685member
    Not true. No story.
    ValueAnalyst
Sign In or Register to comment.