Didi Chuxing seeks bite of used-car business with Renrenche investment
The deal will help Renrenche expand by allowing it to sell through Didi’s app, potentially reaching some 17 million drivers.
China’s answer to Uber, Didi Chuxing, has injected USD 200 million into online second-hand car trading platform Renrenche, giving it a foothold in the lucrative used-car business and allowing Renrenche access to Didi’s huge customer base.
Renrenche, the third-largest used-car trading platform in China, said on Monday it would use the money to accelerate its strategic expansion, and expects to soon be able to offer its services through Didi’s smartphone app as part of the deal.
“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.
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.
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