image credit : Didi Chuxing

China’s leading ride-hailing firm Didi Chuxing has announced its plans of putting up $1 Billion worth of investments into its auto services business marking a major move for the ride-hailing firm as it aims to tap into a wide range of automobile services to broaden its revenues and company wide metrics in preparation for a widely anticipated public offering for the current valued at $56 Billion ride-hailing startup.

Didi revealed its auto services business has totaled a Gross Merchandise Volume (GMV) of $8.79 Billion with its services unit now being combined as a separate entity, Xiaoju Automobile Solutions Co led by Didi General Manager Kevin Chen.

“Building on our service to 30 million Didi drivers, we will strive to develop a leading one-stop auto solutions platform capable of winning the highest trust of car users,” said Kevin Chen, who heads Xiaoju.

Moves like this aims to cement Didi’s status in the Chinese automobile services space with the company expanding across wide areas and regions and forming key partnerships like a recent one with Booking Holdings among others before a planned IPO which would stand as one of the biggest in the technology space given Didi’s current $56 Billion valuation.

Several reports have penned Didi as aiming for a valuation of $80 Billion in an upcoming IPO which could take place on the Hong Kong stock exchange.

With its auto services unit expected to exceed annual gross sales of over $13 Billion this year, It stands as an additional record to Didi’s domination of the ride-hailing and automobile services in the Chinese region where it’s known for having won over its major competitor Uber.

Didi’s IPO taking place at the reported $80 Billion valuation would stand as a major win for the likes of Softbank, Uber, Tencent, DST Global and Temasek who hold significant stakes in the startup which has raised around $20 Billion in total since its inception.

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