Alibaba, Tencent, Suning, and Chinese carmakers are setting up a Chinese ride-hailing venture.
Carnaker Changan Automobile has announced it has invested RMB1.6bn in the Nanjing-based investment company alongside partners such as the investment units of Alibaba, Tencent and retailer Suning.Com Co Ltd. Reports say that FAW and Dongfeng Motor are also investment participants.
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Didi is said to take around 90% of China's growing ride-hail market, so the new company could provide more competition as other players also eye the mobility services market in the world's most populous and highly urbanised country.
Didi also has joint ventures with BAIC and Volkswagen, Reuters reports.
Reuters reported that Changan said that itself, Dongfeng and FAW will each have a 15% stake in the joint venture, which will set up a ride-sharing company with a focus on new energy vehicles.
However, it also said Suning will be the biggest shareholder with a 19% stake while Alibaba and Tencent's investment units will together hold the remainder shares with some other funds.
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