Ucar Group, a mobile app-based chauffeured car service start-up backed by Chinese car rental firm CAR Inc. has reportedly made an undisclosed strategic investment in Beijing-based designated driver reservation app maker eDaijia.
Both Ucar and eDaijia are backed by global private equity firm Warburg Pincus, LLC, which play a key role in the putting the deal together, says the reports.
Warburg Pincus also holds around 11.08% of Hong Kong-listed CAR Inc. after reducing its shareholding in May.
The strategic tie-up, if completed, follows many such partnerships and mergers between Chinese technology start-up rivals this year, including the merger between Didi Dache and Kuaidi Dache, as well as the marriage between group buying platforms Meituan.com and Dianping.com.
Ucar and eDaijia are not merging, but the two are said to plan wide-ranging cooperation in the app-based private car booking sector.
In May, Warburg Pincus led a US$100 million series D round of financing in eDaijia.
For Ucar, Warburg Pincus and Legend Holdings joined a US$550 million series B funding round in the start-up in September.
Two months earlier, Car Inc., Warburg Pincus, and Legend Holdings invested a total of US$250 million in Ucar’s series A funding round.