Didi Chuxing, the Chinese tech giant that operates the country’s most popular ride-hailing app, is investing $1 billion in its auto-services business, the Wall Street Journal reports, as it pursues ambitions of expanding into other markets within the auto sector.
The sub-business – Xiaoju Automobile Solutions Co. – was set up in April of this year to offer vehicle-leasing, refuelling, and car maintenance services. According to a company statement, Xiaoju will also be spun off into an independent company.
Didi is revving up for a multibillion-dollar IPO in coming months, which will help it raise funds to fuel expansionary plans. The company has recently rolled out its services in several large, non-China markets and is building partnerships with auto market giants such as Volkswagen on tech sharing and development.
“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,” the company wrote.
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