CAR Inc has invested US$125 million to acquire half of the 5 million Series A preferred shares issued by online car marketplace and the principal operator for its chauffeur service, Youche. The investment gives CAR Inc a 10% stake in Youche.
Beside CAR Inc, other well-known private investors and investment funds from around the world such as Warburg Pincus and Legend Capital also participated in the Investment round that raised a total of US$250 million for Youche.
UCAR chauffeur service has been enjoying rapid development since it was launched in 60 cities across China on January 28 this year. CAR Inc said it uses its own car pool and professional drivers from its rental company for its chauffeur service and so it doesn’t list self-employed drivers like other platforms do.
CAR Inc said it has already secured a considerable amount of stable long-term income along with high vehicle usage and profitability through its operational partnership with Youche. In light of the considerable business synergy, CAR Inc believes an investment in Youche will be another step towards strengthening the cooperation between the two companies. CAR Inc’s also expects to reap handsome returns on its new equity in Youche and add value to its portfolio and valuation.
CAR Inc's chairman and CEO Zhengyao Lu said the company invested in Youche not only because of its business relationship but it was also part of CAR Inc’s long-term development strategy.
Mr. Lu said CAR Inc will continue to focus on leveraging big data and O2O innovation to improve its user experience, create a mobile auto service platform and promote the creation of a smart travel ecosystem in China.(Translation by David)
