Senmiao Technology Ltd. (Nasdaq: AIHS) announced Wednesday that it has signed a cooperation agreement with Tongcheng-Elong Holdings Ltd. (HKEX: 0780) an affiliate of Travelgo.com.
Travelgo.com serves over 200 million customers, focusing on providing custom travel itineraries for consumers, including domestic and international flights, train and hotel. Under the deal, Travelgo's platform will offer ride-hailing services provided by Senmiao to users booking trips.
If a traveler books an online-ride-hailing vehicle, the order will then be sent to a registered driver on Senmiao's platform for viewing and acceptance. Senmiao will earn commissions for each completed order based on a certain percentage of the value of the order, according to the company.
Xi Wen, the chairman and chief executive officer of Senmiao, stated, "We are pleased to begin this cooperation with a leader in China's travel industry Travelgo.com at a time when the demand for travel and tourism is beginning to see some resurgence post pandemic.”
Travel during China's upcoming Labour Day holiday is expected to surge. Traffic on the national highway network will likely surpass the record 57 million vehicles clocked on May 1, 2019, said the transport ministry's Highway Monitoring and Response Center.
Senmiao expects to see a strong recovery in tourism during the upcoming Labour Day holiday as individuals are increasingly beginning to make travel plans. The company believes that adding online ride-hailing services as an option for TravelGo customers increases the ease and convenience of completing their itineraries.
Last month, Senmiao expanded its partnership with an affiliate of Meituan (HKEX: 03690). Together with the giant, Senmiao is now building a platform for ride-hailing drivers in Guangzhou.
Shares of Senmiao are trading flat at $1.33 apiece.