Chinese ride-hailing behemoth Didi Chuxing announced today it invested $1 billion into its auto solutions platform Xiaoju. Along with the investment, Didi is upgrading the auto solutions platform to Xiaoju Automobile Solutions Co.
Kevin Chen, general manager of the auto solution platform, will become the general manager of the new entity, reporting to Jean Liu, President of Didi Chuxing.
Incubated in 2015 and put in trial operation in April 2018, Xiaoju provides various auto-related services, including leasing and trading, refueling, maintenance and repair, and car-sharing. The creation of Xiaoju Automobile Solutions also brings into operation new family brands, including:
- Xiaoju Auto Leasing & Retail brings vehicle supplies and auto-financing resources to offer auto sale, resale and leasing services through integrated online-offline channels;
- Xiaoju Gas Refueling offers gas services through scale- and expertise-based partnerships with gas stations;
- Xiaoju Auto Care, now available in 7 cities in eastern and southern China, provides authentic components and parts services, as well as maintenance and repair services;
- Didi Car Sharing provides short-term car rental services leveraging use scenarios, user traffic, brand and vehicle solutions.
Currently, Xiaoju Automobile Solutions, with an annualized GMV exceeding RMB 60 billion, is now available in 257 cities in a network of over 7,500 partners and distributors, according to the firm.
“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. Dii believes that only by serving drivers better, will we be able to serve passengers better.” —Cheng Wei, founder, chairman and CEO of Didi Chuxing
From bike rental to food delivery, Didi spends much of 2018 entering seemingly every sector, but car related business remains its most promising field. As a most valuable tech unicorn in China, the company is reportedly gearing up for a Hong Kong IPO at up to $80 billion valuations in the second half of this year.