Toyota invests $600 million in Didi, with the two setting up a new joint venture
Didi Chuxing announced today that it has received new investment totaling $600 million from Toyota Motor Corporation. As part of the deal, the two companies will also set up a joint venture with GAC Toyota Motor to provide vehicle-related services to drivers on Didi’s ride-sharing platform. GAC Toyota itself is a joint venture between Toyota and GAC Group, one of China’s largest automakers.
Nikkei Asian Review first broke news of the deal at the end of May, reporting that Toyota was considering a $550 million investment in Didi and setting up a new mobility-services company in China.
Didi and Toyota announced last year 2018 that it would work together on services that use technology developed by Toyota for its mobility and vehicle-sharing platform, which includes autonomous driving software, a fully electric battery and the “e-Palette,” or modules that can be used to build autonomous vehicles of different sizes, ranging from small ones for deliveries to passenger buses.
Toyota has also backed other vehicle-sharing companies, including Uber and JapanTaxi.
DiDi’s partnership with Toyota is one of several partnerships it has made with car manufacturers and other vehicle-related companies as part of its D-Alliance, including Toyota, Volkswagen, Renault-Nissan-Mitsubishi, as well as major Chinese automakers like FAW, Dongfeng and GAC, with the intention of expanding its reach beyond its ride-hailing services by creating a platform that uses new energy, AI-based and mobility technology.
Didi recently announced that it will open its ride-hailing platform to third-party service providers as part of agreements with FAW, Dongfeng and GAC, three of China’s largest auto makers.