Geely Group to Launch Converged Online Car-Hailing Platform ‘Xingfu Qianwanjia’

ride hailing
(Source: TechSci Blog)

Jiemian reported on Thursday that a source related to Zhejiang Geely Holding Group learned that Geely will launch a converged online car-hailing platform called ‘Xingfu Qianwanjia’, which means ‘bringing happiness to tens of thousands of families’ in Chinese.

The platform is focused on self-operated compliance capacity and opens to third-party providers with high-quality compliance capacity. The project is headquartered in Chongqing.

The source also says that unlike Meituan and AutoNavi, which adopt a loose cooperation mode with third parties, Xingfu Qianwanjia mainly promotes compliance capacity, and requires competent third-party providers to own their own vehicles and drivers. Geely’s subsidiary responsible for the project will be deeply involved with major capacity providers through investment.

At present, Geely has four sub-brands in the travel section: Caocao Chuxing, Limao Chuxing, Yao Chuxing and Xingfu Qianwanjia. These brands are different, among which Caocao Chuxing focuses on the whole scenario, Limao Chuxing prioritizes customized travel, and Yao Chuxing emphasizes quality travel.

Outsiders think that for traditional car makers like Geely, online car-hailing platforms can reach users to the maximum extent, learning users’ usage habits and road data as much as possible, which in turn impacts their carmaking and contributes to the layout of unmanned driving. On the other hand, as traditional car companies grow slowly in sales, they can be revitalized and the sales volume can be boosted by working on online car-hailing.

Online car-hailing has entered an era of stock competition, but the platforms with compliance capacity are still competitive. On November 30, China’s Ministry of Transport and eight other ministries jointly issued an opinion stressing that local transportation authorities should urge the enterprises of online car-hailing platforms to strictly abide by laws and regulations, and should not use drivers and vehicles without online car-hailing licenses.

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Since Didi, an online car-hailing giant in China, came under supervision in July, the firm couldn’t gain any new users through its mini program in WeChat or through its app. In the past six months, the order volume of other online car-hailing platforms has increased by 2-3 times. Didi announced today that the company will initiate the delisting process from the NYSE, and will start preparations for listing in Hong Kong.