Car-Booking Firm Shouqi Nets Money, Technology From Baidu-Led Group
Chinese car-booking service Shouqi has raised $105 million in new funds from a group led by Baidu Inc. and NIO Capital, which may also help the firm develop driverless-car technologies and deploy electric vehicles.
Combined with its two previous funding rounds, Shouqi Limousine & Chauffeur — a subsidiary of state-owned Shouqi Group — has raised at least 1.5 billion yuan ($230 million).
Founded in 2015, Shouqi offers both ride-hailing and car-rental services. It now operates in 53 Chinese cities and owns more than 60,000 cars throughout the country, the company said.
By partnering with Baidu, Shouqi hopes it can take advantage of the tech giant’s driverless technology. Baidu has previously agreed to provide Shouqi with its Baidu Map service, the official Xinhua News Service reported last month. The tie-up with electric vehicle-maker NIO Capital may help Shouqi eventually deploy new-energy fleets.
Unlike many ride-hailing services, such as Didi Chuxing — which recruit private car owners who often drive part-time and compete with ordinary taxis — Shouqi’s car-booking business focuses on higher-end, more expensive chauffeur services.
A national law that legalized the ride-hailing industry last year increased requirements for companies and private drivers. For instance, drivers must now be local residents with locally registered vehicles.
The regulations have had little effect on Shouqi, as most of its vehicles are registered and its drivers are local residents.
In February, the company became the second car-booking company to legally offer online car rental services throughout China, after securing a four-year operating license from Beijing traffic authorities.
Although Shouqi boasts more than 20 million users, including over 2.4 million active users, the company lags far behind rival Didi Chuxing, according to company CEO Wei Dong.
As a result, the company has adopted a “differentiation strategy,” Wei said, focusing on high-end costumers that are usually neglected by competitors.
Contact reporter Mo Yelin (firstname.lastname@example.org)
Nov 22 17:17
Nov 22 15:01
Nov 22 14:51
Nov 22 14:59
Nov 22 14:33
Nov 22 12:09
Nov 22 03:40
Nov 22 03:03
Nov 21 20:17
Nov 21 16:02
Nov 21 15:56
Nov 21 13:07
- 1In Depth: Southeast Asia Becomes Region’s Next Tech Battleground
- 2U.S. to Extend Huawei Reprieve by Allowing It to Continue Trade With U.S. Clients: Report
- 3Quantum Computing, CRISPR, Drones, Are Put on Chinese Kids’ Reading List
- 4In Depth: The Rise and Fall of Asian Twin Cities
- 5China Sets Up Massive New Fund Firm to Transform Manufacturing
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas