(Yicai Global) March 19 -- China’s leading ride-hailing firm Didi Chuxing has become a major shareholder in Shenzhen Yestock Car Rental Co. through share subscription, said a statement from the latter today. The deal indicates growing demand for the services provided by the world’s largest car-hailing firm.
“According to the mutual agreement, Yestock will provide car hire-purchase or leasing services, and other diversified value-added services, to full-time drivers on the DiDi platform. The two parties will jointly expand the car-hailing and automotive service markets,” it said. However, the statement gave no further details regarding the investment amount and number of shares subscribed.
Shenzhen Yestock Car Rental is China’s first foreign-owned car rental company. It has set up over 200 sales locations and nearly 30 large-scale car depots in around 160 cities to offer integrated car services across China.
In early 2015, it reached a strategic cooperation agreement with Didi to provide customized and long-term leasing service of all types of vehicles for the car-hailing giant. Didi now controls 99 percent of China’s ride-hailing market with nearly 300 million users in more than 400 cities.