Didi to invest US$1b in auto servicing business

China's leading ride-hailing service provider Didi Chuxing said on Monday it will invest US$1 billion into its auto services business as part of its efforts to re-brand the unit.

The funding towards 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 business, which includes auto leasing, car maintenance and gas station services, as well as car rental services, are now available in 257 cities in a network of over 7,500 partners and distributors.

Didi said these services contribute an annual transaction size of about 60 billion yuan (US$8.79 billion).

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 launched its auto solution platform in April 2018, which started out with as many as 30 million Didi drivers, and has been striving to develop a one-stop auto solution platform since then. 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.