Jul 26, 2019 (China Knowledge) - Toyota Motor Corp is to invest USD 600 mln in DiDi Chuxing and the Japanese car maker’s automotive manufacturing venture GAC Toyota Motor will set up a new joint venture for mobility services with the Chinese ride-hailing giant.
According to a joint statement released yesterday, the cooperation between the two companies will emphasize on providing quality car maintenance support and safe driving guidance to ride-hailing drivers in Mainland China. A closer tie between Toyota and DiDi is conducive in promoting Toyota’s proprietary Mobility Services Platform in China, which includes vehicle management, maintenance, insurance and financing for both ride-hailing drivers and consumers.
The senior vice-president of DiDi Stephen Zhu believes that the combination of DiDi’s expertise in AI-based large-scale mobility operations and Toyota’s leading connected vehicle technology can lay the foundation to build a next-generation intelligent transportation framework for sustainable cities.
Despite an estimated market penetration of 88% in China’s ride-hailing sector, DiDi was still losing money according to the company’s report released in April. Meanwhile, the company is confronted with intensified competition in this sector.
Last month, Meituan Dianping launched its aggregated ride-hailing service in 10 Chinese cities. Alibaba’s AutoNavi, a map app with 100 million daily active users, has also operated an aggregated platform that allows users to book rides. Moreover, earlier this month, backed by Alibaba (BABA), Tencent (TCEHY), Suning.com (002024), and state-owned car makers Dongfeng Motor Corp (DNFGY) and FAW Group (000800), a new rider-hailing start-up T3 launched its trial operation in Nanjing.
To gain a strong foothold amid the fierce competition, DiDi has stepped up to expand its presence in the sector. Last month, the company invested an undisclosed amount in a new ride-hailing service provider backed by Tencent called OnTime. Last April, DiDi struck partnerships with auto-makers including Dongfeng, FAW, Volkswagen, etc., aiming to launch an open platform for new energy vehicles, artificial intelligence and shared mobility for the auto industry.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: firstname.lastname@example.org
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI