Global News and Digital Insights
for the Consumer Goods Industry

Alibaba invests in Chinese Letzgo to meet the online car ride-hailing demand



According to the latest Chinese Ministry of Transport Data, China has 248 licensed online ride-hailing companies but China’s dominant ride-hailing app, Didi Chuxing, has been banned from new registries. Plus, its 25 mobile apps have been removed due to national security and data risks. Therefore, to meet the boosting demand of the online car-riding industry in China, Alibaba Group Holding has bought a 10% stake and invested $6.27 million in a state-owned Shanghai-based online ride-hailing service named Letzgo. This is not Alibaba’s first investment in the shared transport sector. Big names including Hello Inc.; a Chinese bike-sharing start-up, AutoNavi Software Co., and T3 Chuxing are all backed up by Alibaba.

Read more from Asianikke