Didi invests in Tencent-backed ride-hailing start-up amid efforts to expand strategic alliances
- OnTime, which also counts GAC Group as an investor, was set to launch its service later this month in Guangzhou
- Didi will help the new ride-hailing player in areas such as technology development, transaction strategy and customer service
Didi Chuxing has invested an undisclosed amount in OnTime, a new ride-hailing service provider backed by Tencent Holdings, in a move that widens its strategic alliances as competition in the domestic market heats up.
Beijing-based Didi, operator of China’s largest ride-hailing platform, announced that deal as part of an agreement with Guangzhou Automobile Group Co (GAC Group) to expand their partnership into areas such as ride-hailing operations, fleet management, autonomous driving and other smart vehicle-related technologies, according to a joint statement from the two companies on Wednesday.
“Didi is committed to building an open, inclusive, mutually beneficial mobility ecosystem,” said company founder and chief executive Cheng Wei in the statement.
OnTime, which also counts GAC Group and Guangzhou Public Transport as investors, was set to launch its service later this month in Guangzhou, the capital and most populous city in the southern coastal province of Guangdong.
As an investor in OnTime, Didi said it will provide its expertise to support the new ride-hailing player in areas such as technology development, transaction strategy, and customer service and response mechanisms.
A Didi spokesman declined to comment on the amount of investment the company made in OnTime or provide any other information beyond the released statement.