Kandi Stock Jumps 7% on Ride-sharing Collaboration With Youxing
The Chinese electric vehicle company said it plans to provide 20,000 cars for ride hailing in the next three years.
Shares in Kandi Technologies Group Inc. (Nasdaq: KNDI) jumped 7 percent by Tuesday afternoon to $5.83 apiece after the electric vehicle maker announced its collaboration with Hangzhou Youxing Technology Co. Ltd. on an online ride-sharing business.
Under the agreement, Kandi Electric Vehicles Group Co. Ltd., the joint venture of Kandi and Geely Group Ltd., will work with Youxing's online platform Cao Cao to launch 20,000 electric vehicles for ride hailing in the next three years, according to a statement by the companies today.
Youxing, owned by Geely, "aims to become the first ever ride-sharing platform combining the Internet and New Energy Vehicles," the companies said.
Kandi's chairman and chief executive, Xiaoming Hu, said, "We believe that our strong alliance will provide users with a high-class and convenient ride-sharing experience as part of efforts to achieve a one-stop low-carbon lifestyle."
Hu added, "Combining our resources will enable us to rapidly expand market share, cut costs, and help maximize our business profits."