Apple and Didi is about foreign cash and the future of motoring by Bob Cringely
“The Didi investment makes sense for all the reasons other writers have mentioned — Chinese relations, metadata, important Apple market, something behind Door Number Three having to do with self-driving cars — but there’s a lot more to it than that.
“Why invest in Didi and not Uber? The major reason is because Uber is based in San Francisco — it’s an American company and so that $1 billion from Apple would have to come from Apple’s much smaller domestic cash stash. Also Didi’s valuation is less than half of Uber’s which means Apple gets more company for its money.
“Think about it: which company is likely to ever grow 10X in value? Not Uber. 10X would be $625 billion — worth more than Apple, Google or any other company anywhere. For Didi, 10X is $265 billion — still a lot but more realistic, especially for a company that’s totally dominating the second largest world market for its services.
“Another company that won’t grow 10X ever is Apple, itself. So if Cupertino wants capital gains, the better company to invest in is Didi, not Uber or Apple.” …
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