This website requires JavaScript.
Daily Briefing

Alibaba’ new bet on transport market: Continuing investment in Car-sharing startup Like Chuxing

Feb 26, 2019 by The Passage Team
Alibaba’ new bet on transport market: Continuing investment in Car-sharing startup Like Chuxing

Chinese car-sharing startup Like Chuxing has secured a series B+ round of financing worth tens of millions of US dollars from a group of investors including Fanchuang Capital, through which Ant Financial, the fintech unit of Chinese ecommerce giant Alibaba, continued to increase its investment with the intention of enhancing Alibaba’s own strength in transport industry.

Actually, Like Chuxing announced that it had finished its B rounds of financing in May 2018, which was led by Ant Financial.

Besides Like Chuxing, Ant Financial has invested USD 2 billion in Hellobike and controls more than 36% of Hellobike shares in December 2017, which means that Alibaba began to dabble in transport market. Meanwhile, coordination programs of Hellobike and its backer, like usage of Alibaba Cloud and elimination of security deposits of Zhima Credit, are keeping the partnership strong.

According to Jiemian, in July of last year, Hellobike secured a new round of financing worth around USD 5.9 billion mainly from two leaders Chunhua Capital and Ant Financial. Two months later, Hellobike changed its name to Hello Chuxing and its business became increasingly more diverse. On Oct 11th, 2018, Hello Chuxing released its net car business to the public and selected Shanghai, Nanjing and Chengdu as experimental cities in the initial stage. It has also recruited free-riding vehicle owners on the official to expand its business.

Due to the terrible events of Didi which happened in 2018 and shook ordinary people’s confidence on net car business, the whole transport industry is faced with more obstacles. Not only the relevant departments, but also we consumers, have raised more requirements to these companies. People tend to prioritize safety rather than convenience.

In a sense, the outlook of transport market is not that promising. For companies like Like Chuxing and HelloChuxing, there is still a long way to go.

The Passage Team

The Passage is committed to creating in-depth content over technology industry across Asia with a focus on emerging startups in the technology, healthcare, education, food, tech, travel & mobility segments.

Follow The Passage Team