Xpeng, the Chinese electric vehicle manufacturer, has announced the acquisition of Didi’s smart electric vehicle assets, the largest ride-hailing app service in China, in a deal worth $744 million. This business unit of Didi will be known as Mona and is set to launch in 2024.
Didi stated that this deal is a strategic collaboration between the two companies to promote the use of smart electric cars and related technologies. Looking back in history, a similar deal happened with Uber selling its self-driving car development business to Aurora and its flying taxi business to Joby Aviation.
Xpeng currently holds a 2.1% market share in the electric vehicle market in 2022. This deal could potentially help increase Xpeng’s market share through Didi’s services.