Didi Chuxingannouncedtoday that it has received from Toyota Motor Corporation new investment totaling $600 million. 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 ridesharing platform. GAC Toyota itself is a joint venture between Toyota and GAC Group, one of China’s largest automakers.
Nikkei Asian Review firstbroke 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 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 andthe “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 alsobacked 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 and 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.
Didirecently announcedthat 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.