DiDi Invests $1 Billion in Auto Services Business

China car-sharing giant DiDi Chuxing Technology Co. plans to invest $1 billion into its new Xiaoju Automobile Solutions business.

The money will be used to support DiDi’s Xiaoju software platform, add services and expand outside China. Kevin Chen, General Manager of the auto solution platform, was appointed general manager of the group, reporting to Didi President Jean Liu.

DiDi formally launched the business earlier this year. Among the new services added to the base car-sharing business are leasing, vehicle maintenance/repairs and a partnership with gas stations. DiDi also plans to add bike-sharing and food delivery services.

Analysts continue to speculate that DiDi will launch an initial public stock offering by early next year. The company hasn’t commented on the reports.

Launched in 2015, DiDi’s open-source Xiaoju platform is expected to generate annualized sales of 90 billion yuan ($13 billion) by the end of the year. The company offers ride- and car-sharing services in more than 250 cities in China through a network of 7,500 drivers, partners and distributors.