GAC creates ride-hailing JV with Tencent
Chinese Guangzhou Automobile Group will partner with domestic Internet giant Tencent Holdings to provide ride-hailing services initially in south China.
The companies will establish a 1 billion yuan ($149 million) joint venture in the south China city of Guangzhou along with local public transportation operator Guangzhou Public Transport Group.
GAC will take a 35 percent stake in the partnership, Tencent will hold 25 percent and Guangzhou Public Transport will have 10 percent. The remaining 30 percent will be owned by the joint venture’s employees and a small number of investors.
Operation is to begin in June in Guangzhou and is to expand in the next 12 months to four other cities in the south China province of Guangdong.
GAC will supply some 10,000 electric vehicles for the joint venture’s ride-hailing fleet operating in the five cities.
The vehicles will be fitted with connected-car technologies GAC will develop with Tencent.