Didi to invest US$1b to re-brand one-stop car services business

Source: Xinhua | 2018-08-07

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 car-hailing 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 one-stop 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.