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Didi Chuxing
Tech

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

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Didi Chuxing has been spending heavily to diversify its business. Photo: Reuters
Sarah Dai

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.

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Didi Chuxing staff member shows drivers how to use a spray bottle to disinfect their vehicles in Nanjing, Jiangsu province. Photo: Xinhua
Didi Chuxing staff member shows drivers how to use a spray bottle to disinfect their vehicles in Nanjing, Jiangsu province. Photo: Xinhua

With ties to the South Korean conglomerate Hyundai, the Beijing-based insurer’s operations cover auto, casualty, property, health and reinsurance.

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A Didi spokesman declined to comment on the investment.

The investment comes as China’s ride-hailing market has been suffering from reduced demand, as people across the country are advised to work from home and told to avoid social gatherings amid the Covid-19 epidemic that has so far claimed more than 3,100 lives in China. Schools in China are closed until further notice.
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