Senmiao Technology Announces Strategic Cooperation with Meituan, China's Leading E-commerce Platform for Services
CHENGDU, China, Dec. 2, 2020 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (Nasdaq: AIHS), a provider of automobile transaction and related services targeting the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced initial results from its first month of operations in Chengdu following a strategic cooperation with Shanghai Lutuan Technology, an affiliate of Meituan-Dianping ("Meituan", (HK: 3690)), the largest on-demand delivery service in China.
Over the past several weeks, Senmiao has focused on building out a total solution for ride-hailing drivers in Chengdu, which includes financing arrangements, leasing, rentals, integration of safety features, and most recently, the launch and development of Xixingtianxia, Senmiao's proprietary online ride-sharing platform. The Company has signed agreements with affiliates of BYD Company Limited (electric vehicle manufacturer) for purchase of electronic vehicles, and has now begun to integrate services with popular apps in China, such as Gaode Map and now Meituan.
As China's leading e-commerce platform for services, Meituan is focusing on its "Food + Platform" strategy to build a multi-level technology service platform, covering the whole process from demand to supply in people's daily lives. Potential riders utilizing Meituan's application can also request transportation on the application. Under Senmiao's collaboration with Meituan, when a rider using Meituan searches for taxi/ride-hailing services on the platform, the platform provides this rider a number of online-ride sharing companies for selection, including Senmiao's platform, Xixingtianxia. If selected by the rider or by the Meituan application, the order will then be distributed to registered drivers on Senmiao's platform for viewing and acceptance. Senmiao earns commissions for each completed order based on a certain percentage of the value of the order and settle its commissions with Meituan on a weekly basis.
In November, Senmiao saw the number of daily rides utilizing Meituan in Chengdu average approximately 110,000 orders, with an acceleration in driver acceptance following the integration of aggregation platforms such as Meituan. Senmiao saw its daily market share of total online ride-hailing orders on Meituan in Chengdu increase from 3% to 14% during the month.
Xi Wen, Senmiao's Chairman and Chief Executive Officer stated, "We have been pleased with the rapid driver adoption of our platform over the past few weeks, which we feel is largely due to the strategic roll-out of partnerships with companies such as Meituan. We have stayed focused on becoming a leader in our core markets, and so far have reported excellent growth in Chengdu. We have long-believed in the theme of increased digitalization of transportation, and are evolving from solely providing financing options to drivers interested in ride-sharing to working with leading partners in creating an entire ecosystem for the market. The initial results are evidence that this strategy is beginning to show tangible results."
Senmiao intends to launch its Xixingtianxia platform in Changsha, China in the coming weeks.
About Senmiao Technology Limited
Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchase and financing, management, operating lease, guarantee and other automobile transaction services as well as its own ride-hailing platform aimed principally at the growing ride-sharing market in Senmiao's areas of operation in China. For more information about Senmiao, please visit: http://www.senmiaotech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements (including those relating to the operation of Senmiao's ride-sharing platform and the collaboration with Meituan as described herein) are subject to significant risks, uncertainties and assumptions, including those detailed from time to time in the Senmiao's filings with the SEC, and represent Senmiao's views only as of the date they are made and should not be relied upon as representing Senmiao's views as of any subsequent date. Senmiao undertakes no obligation to publicly revise any forward-looking statements to reflect changes in events or circumstances.
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