Geely unit CaoCao promises to shake up China ride-hailing market after US$1.5b valuation
Company has more than 12,000 Geely electric cars in 17 cities, with more than 10 million users
CaoCao Car, a unit of Geely Auto and electric car ride-hailing app, has completed its first major funding round, at a valuation of more than 10 billion yuan (US$1.5 billion), the company said on Wednesday.
By raising 1 billion yuan from domestic and overseas investors in the Series A funding round, Hangzhou-based CaoCao signals a potential return of China’s ride-hailing price wars, as Geely – the country’s largest private carmaker – raises its stake in the hotly contested sector.
Tencent-backed Meituan-Dianping, China's largest on-demand services provider, recently showed its ambitions to expand into the sector, a move that could challenge Didi Chuxing, the world’s largest ride-hailing company.
“After the completion of the first funding round, the company will launch in Shenzhen and Chongqing in the short term,” said CaoCao. It currently has a fleet of more than 12,000 Geely electric cars in 17 Chinese cities, with the number of users exceeding 10 million, the company said. It also offers electric car rental services in some cities.
Geely Auto is the parent company of Swedish carmaker Volvo and Terrafugia, a United States-based flying car start-up. Terrafugia has said its vehicles will take to the skies by 2019.
“In the future, the company (CaoCao) plans to leverage Volvo’s driver-assistance system and autonomous vehicle technology, as well as Terrafugia’s flying car technology, to offer more diversified transport options for users.”