FAW, Dongfeng, Changan launch ride-hailing joint venture to challenge Didi
The three chinese major state-owned automakers FAW Group, Dongfeng Motor Group and Changan Automobile launched a ride-hailing joint venture to challenge market giant Didi Chuxing.
The three companies established the 9.8 billion yuan ($1.4 billion) ride-hailing partnership in the east China city of Nanjing with local online retailer Suning and domestic Internet giants Alibaba Group and Tencent.
The joint venture, known as T3 Chuxing (Chuxing means mobility in Chinese), will start operation in Nanjing and expand into five other major domestic cities - Chongqing, Wuhan, Guangzhou, Hangzhou and Tianjin -- before year end, according to FAW.
The venture plans to make services available in most of the provincial capitals in China in 2020 and expand its fleet to 300,000 vehicles by the end of 2022 from 20,000 at the end of this year.