Alibaba, Tencent Team With State Carmakers to Create USD1.5 Billion Ride-Sharer
Zhang Yushuo
/SOURCE : yicai
Alibaba, Tencent Team With State Carmakers to Create USD1.5 Billion Ride-Sharer

(Yicai Global) March 22 -- Chang'an Automobile has teamed up with other 10 firms including tech giants Alibaba Group Holding and Tencent Holdings to set up a CNY9.8 billion (USD1.5 billion) investment partnership for the ride-sharing sector using new energy vehicles.

Chinese electronics retailer Suning.Com is also involved in the setup of Nanjing-based Lingxing Equity Investment Partnership, the Chongqing-based carmaker said in a statement.

Nanjing's Suning will be the largest single shareholder with a 17.4 percent stake based on an outlay of CNY1.7 billion followed by Chang'an Automobile, Dongfeng Motor and First Automobile Works Group, which invested CNY1.6 billion each for 16.4 percent shares. Tencent, Alibaba, Feiye Investment, Rongxun Smart Transport Industry Investment Fund and Hengchuang Yunzhi Network Technology jointly contributed CNY2.3 billion for a 23 percent stake.

The partnership is the result of joint efforts by the three state-owned automakers and leading firms in the internet, finance and retail fields among others to create a new smart transport business ecosystem with an internet-connected and sharing system. It aims to become China's most reliable transport service firm, the statement said.

The Chinese shared mobility sector has experienced changes in recent times with multiple new entrants after industry heavyweight Didi Chuxing reported multiple incidents related to safety last year.

Changan Automobile's [SHE:000625] stock price hit the upper limit at CNY8.77 (USD1.31) per share today. Dongfeng Motor [SHA:600006] also hit the maximum allowed 10 percent increase at CNY4.98.

Editor: William Clegg

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Keywords: Alibaba , Changan Automobile , Tencent , Suning