Chinese ride-hailing platform Didi Chuxing has decided to invest $1bn into its auto solutions platform, Xiaoju Automobile Solutions Co.
The auto platform has been under development by Didi since 2015 and was launched in April 2018 in order to provide car services such as car leasing, sharing and trading, refuelling, maintenance and repair.
The platform will become known as Xiaoju Automobile Solutions with Kevin Chen being retained as general manager of the new entity, reporting directly to Didi Chuxing’s president.
Cheng Wei, CEO of Didi Chuxing, said: “The creation of Xiaoju Automobile Solutions is not onlya key step towards achieving Didi’s automobile alliance strategy, but also a milestone in organisational innovation as we continue to expand our business horizon. Didi believes that only by service drivers better, will we be able to serve passengers better.”
The auto solutions platform has an annual gross merchandise volume (GMV) of $8.8bn according to China Money Network. It works with 7,500 partners across 257 cities in China.
The rebranded service, according to TechNode, will be bringing its services together under the four headings of Xiaoju Auto Leasing & Retail; Xiaoju Gas Refueling; Xiaoju Auto Care; Didi Car Sharing.