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Business

Apple buys a $1 bln stake in Uber's Chinese rival

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Business

Apple buys a $1 bln stake in Uber's Chinese rival

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COMING UP:Apple buys a $1 bln stake in Uber's Chinese rival

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Transcript

00:00:02
>> A billion dollar bet for Apple in its second biggest market. The U.S. tech giant announcing the late on Thursday that its plowing money into Uber's biggest Chinese rival Didi Chuxing. It's the number one named by a longshot for taxi apps in China. Didi's 11 million rides a day landing at almost 90% of the country's taxi app market.
00:00:20
As Paul Carson explains, this deal may be a case of the enemy of my enemy is my friend.>> For Didi, it really doesn't hurt to get a huge chunk of cash, $1 billion, from the world's most prestigious and valuable company, Apple. Didi has been spending money like crazy in a battle in China with Uber.
00:00:38
For Apple, it doesn't really make sense to invest in Uber because both companies are working on autonomous driving to an extent and will probably end up clashing with each other. Apple has now kind of joined this coalition of companies that either are competing with Uber or look set to in the future and that includes GM, the carmaker in the U.S., and Lyft, the other U.S. ride hailing app.
00:01:01
>> China is a critical market for Apple, but it's been through some tough times in the country recently. iPhone sales have fallen, and some of Apple's online stores have been shut down. That's got analysts wondering if the company's interest in Didi may go beyond business.>> For Apple, people are also seeing this as something that has political advantages for them in China.
00:01:19
They've had a really rough time here lately and a tried and tested tactic of U.S. tech phones when they hit issues in China is to partner with or invest in Chinese tech phones. It's often seen as a way to curry favor with the government and get back on Beijing's good side.
00:01:35
>> Apple CEO Tim Cook is keeping quiet on the companies future with cars, but he's still upbeat about Apple's chances in China. He's flying out for a visit later this month.