Didi to invest $ 1 billion in rebranded auto services business

Shanghai (Gasgoo)- Chinese ride-hailing giant Didi Chuxing announced on August 6 that it will invest $ 1 billion in its auto services business as part of a broader rebranding of the unit, aiming to provide car-owners with one-stop automobile services.

Launched in April, the auto service business, which has been named Xiaoju Automobile Solutions, works on supplying such services as auto leasing, trading, refueling, maintenance, repair and car rentals.

It is reported that Xiaoju Automobile Solutions has already created an annualized gross merchandise volume (GMV) topping RMB 60 billion and has currently offered services in 257 Chinese cities with the cooperation of roughly 7,500 partners and distributors. 

“Building on our service to 30 million Didi users, we will endeavor to develop a leading one-stop auto service brand in virtue of thoughtful services and innovative technologies,” said Kevin Chine, the newly appointed general manager of Xiaoju Automobile Solutions, who will directly report to Didi president Jean Liu.

The decision just came as Didi Chuxing has reportedly been preparing its IPO, which could happen as early as next year. However, the company has not disclosed the concrete listing plan yet. 

On July 17, Didi Chuxing claimed that it received a $ 500 million worth of investment from Booking Holdings, a global leader in travel e-commerce. Meanwhile, two companies formed a strategic partnership to build up across-the-board mobility service ecosystem.