INSUBCONTINENT EXCLUSIVE:
A week after spinning out its driver services business and giving it $1 billion in investment capital, Didi Chuxing has added to it through
an acquisition.
Xiaoju Automobile Solutions (XAS), which the Didi spinout is called, announced today it has boughtHiservice, a
three-year-old company that provides after-service care for car owners using a digital platform.
The deal was undisclosed, but XAS said that
Hiservice will be combined with its maintenance and repair division to form a new unit that focused on car-owner services such as
maintenance, parts and components
That&ll be calledXiaoju Auto Care (小桔养车) for those of you who are keeping up with the names of these Didi
subsidiaries.
That auto care business will be jointly run byYinbo Yi, who had run Didi auto care business, and Hiservice founder Cheng Qian,
The new business claims 28 physical maintenance centers across seven cities in Asia.
Didi move to create XAS, which removes an asset-heavy
business from the core Didi books, is seen by many as a sign that the company plans to go public soon
Unsurprisingly, Didi isn''t commenting on that at this point
The company was last valued at $56 billion when it raised a $4 billion round late last year — it has since added a $500 million strategic
investment from travel company Booking Holdings.
While it is organizing its China-based business, Didi has also spent this year expanding
It has launched in Mexico, Australia and Taiwan while it acquired Uber rival 99 in Brazil
It is also edging close to launching a taxi-booking service inJapan via a joint venture with SoftBank.
