DiDi Chuxing Invested New Business in Used Car Trading

China’s answer to Uber, Didi Chuxing, has injected US$200 million into online second-hand car trading platform RenRenChe, giving it a foothold in the profitable used-car business and allowing RenRenChe access to Didi’s huge customer base.

China’s Didi Chuxing is already well-known for making investments, but this time around the ride-sharing company has stepped beyond backing companies in its core industry with its latest deal.

That’s because Didi has backed RenRenChe, China-based online peer-to-peer car marketplace, via a strategic investment that is confirmed at $200 million.

With the RenRenChe deal, Uber is adding peer-to-peer trading to its stack of services in China, which spans basic taxi services, online bus booking, test driving, dock-less Ofo bikes and more.

Didi is valued at over $50 billion and its on-demand car empire stretches beyond China, where it remains in the process of buying Uber’s local business.

The firm has links in Europe, South America, India, Southeast Asia, the U.S. and the Middle East thanks to investments in the likes of Taxify, 99, Ola, Grab, Lyft and Careem.

With the RenRenChe deal, Uber is adding peer-to-peer trading to its stack of services in China, which spans basic taxi services, online bus booking, test driving, dock-less Ofo bikes and more.

Three-year-old RenRenChe is a classified site that allows car owners to sell directly to other consumers. It covers over 80 Chinese cities, and it claims 100,000 car listings.

Didi’s investment is the latest sign that companies are betting big on the used-car market in China

“More than 400 million passengers and 17 million drivers are expected to be added to our customer base on the closing of the financing,” said Li Jian, co-founder and CEO of RenRenChe.

As part of the deal, Didi said it will look to integrate RenRenChe’s service into its apps, while it will contribute to helping with R&D and technical development. A spokesperson confirmed that there is no plan to take the integration overseas with Didi’s global partners, however.

Didi’s investment is the latest sign that companies are betting big on the used-car market in China, especially after several positive signals from the Chinese authorities, who have been introducing measures to facilitate the trading of second-hand cars since last year.

RenRenChe’s other investors include Redpoint, Tencent and Shunwei Capital, among others. The company, according to Crunchbase, has raised about $460 million to date (including this latest round).

Source: techcrunch.com, SCMP

Header photo: techcrunch.com

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