Kandi's Ride-Sharing Program Gets Didi Chuxing Among Allies
Shares in the electric vehicle maker inched up 7 cents after Kandi announced China’s ride-hailing giant is taking its side.
Shares in Kandi Technologies Group Inc. (Nasdaq: KNDI) inched up 7 cents by midday Thursday, to $5.76 apiece, after the electric vehicle maker announced its cooperation agreement with China's ride-hailing giant, Didi Chuxing Technology Co.
In a statement today, Kandi said its joint venture with Geely Group Ltd., Kandi Electric Vehicles Group Co. Ltd., will supply Didi with electric cars for ride-sharing. On its part, Didi will promote Kandi's EV models, as well as provide leasing-related platform resources.
The development is part of the Online Ride-Sharing Service Alliance, which was set up to provide 300,000 government-accredited cars for ride-hailing over the next five years, according to the report. The alliance launched last month after Kandi partnered with state-owned China Resources (Zhejiang) Vehicle and Ship Natural Gas Co. Ltd., a Fortune 500 company.
"With the rapid expansion of Internet use in recent years, the urban public transportation solution has progressed from a self-driving timeshare car rental service to an online ride-hailing service, which has experienced tremendous growth," Kandi's chairman, Xiaoming Hu, said in the report.
"So far, we have secured 300,000 government-accredited EVs within five years for the Online Ride-Sharing Service Alliance, including the related agreements with Cao Cao Zhuan Che and China Resources (Zhejiang)."
Hu concluded, "Now adding this partnership with China's largest mobile transportation platform, Didi Chuxing, will certainly help the Online Ride-Sharing Service Alliance grow quickly and play a crucial role in Kandi's robust development in China's EV market."