China Company Investing $1b in Auto Services

Didi Chuxing Technology, China’s largest ride-hailing service, said on Monday it will invest $1 billion in its auto services business, part of a larger unit rebranding as the company ramps up to a widely anticipated initial public offering. Didi’s services business, which includes auto leasing, car maintenance and gas station services, has gross merchandise value sales of 60 billion yuan ($8.79 billion), the company added. The unit will be consolidated under new business Xiaoju Automobile Solutions Co., it said, Reuters reported. “Building on our service to 30 million Didi drivers, we will strive to develop a leading one-stop auto solutions platform capable of winning the highest trust of car users,” said Kevin Chen, who heads Xiaoju. The decision comes as Didi is preparing for a blockbuster IPO, which could happen as early as next year, according to people familiar with the plans. However, the Chinese ride-hailing giant has not yet confirmed plans for the listing. A Didi IPO would be one of the biggest of recent years given the company’s $56 billion valuation at its last fundraising round in 2017.