Didi Chuxing’s diversification gains momentum as it buys large stake in Hyundai Insurance China
- Dirun Tianjin Technology, a unit of the Beijing-based ride-hailing giant, bought a 32 per cent stake in Hyundai Insurance China
- Didi is the second-largest shareholder in the insurer along with Legend Holdings
Didi Chuxing, China’s largest ride-hailing platform, has forayed into insurance, ramping up its diversification efforts even as the deadly coronavirus outbreak hits demand for its bread and butter transport services.
Dirun Tianjin Technology, a subsidiary of the Beijing-based tech giant, took a 32 per cent stake in Hyundai Insurance China, the China Insurance Regulatory Commission said on its website on Tuesday.
Legend Holdings, the controlling shareholder of computer maker Lenovo Group, also acquired a similar stake. The Didi unit and Legend are now the second-biggest shareholders after Hyundai Marine and Fire Insurance’s 33 per cent. Hyundai Marine sold the stakes for a combined 1.1 billion yuan (US$158 million), the regulator said.
With ties to the South Korean conglomerate Hyundai, the Beijing-based insurer’s operations cover auto, casualty, property, health and reinsurance.
A Didi spokesman declined to comment on the investment.
Last month Didi said that it would spend about 100 million yuan to install protective plastic dividers between the driver and passenger seats in cars to prevent droplet transmission of the deadly virus.
Didi’s new investment comes after it rolled out a suite of financial services last year, including car insurance, personal loans, crowdfunding and wealth management products, to build new streams of revenue.
Didi Chuxing puts plastic dividers in cars to help stop the spread of coronavirus
Before the nationwide launch, the company had tried out financial services in early 2018 in 10 mainland cities including Chongqing, Zhengzhou and Foshan.
The services were launched with the aim of providing “innovative and reliable personal financial products in an era of new economy and flexible employment”, the company said last year.
Didi said that it hoped its finance arm would link drivers and industry partners to a supply of new energy vehicles through purchasing, leasing and other financing services.
Didi is not the only ride-hailing company to diversify its operations. Last April, Singapore-based Grab launched an online insurance marketplace in Southeast Asia to gain lending licences in several countries.
In October, Uber announced a new division called Uber Money, which offers users financial products including an e-wallet that can track, move and manage their money, and debit and credit cards.
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