Uber China Teams Up With Guangzhou Automobile To Compete With Didi Kuaidi

Uber China has established a comprehensive partnership with Guangzhou Automobile Industry Group, as the China unit of U.S. ride share leader Uber competes with dominate local Chinese player Didi Kuaidi, according to a regulatory filing.

The two partners will work together on promoting the use of new energy vehicles, auto sales, auto loans, after-sales services and marketing.

Drivers who partner with Uber China will also get discounts if they purchase new cars or trade their used cars on Guangzhou Automobile Industry Group’s platforms.

The Guangzhou automaker has also invested an undisclosed but significant amount in Uber China as part of its series B financing round, which was reportedly near completion of raising US$1 billion in August.

Baidu Inc, China CITIC Bank Corp Ltd., China Life Insurance Co., Ltd., Ping An Insurance Group Co. of China were reportedly among the investors in the round.

Officially launched in February 2014, Uber China is now operating in 21 Chinese cities and plans to expand to nearly 100 cities in the next 12 months.

Guangzhou Automobile Industry Group plans to release six new energy vehicle models in the next five years.

New energy vehicles enjoy certain benefits in many major Chinese cities, include subsidies, better chance of winning the lottery to obtain licenses, and no driving restrictions.

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