China’s largest ride-hailing platform Didi Chuxing says that its one-stop automobile solutions platform – Xiaoju Automobile Solutions – has entered into a strategic partnership with four subsidiaries of China’s finance giant Ping An Group in the areas of car rental, auto insurance, car maintenance, and EV charging services.
The new partnership is an important extension of D-Alliance, Didi’s open network of partnerships with leading automakers and other industry players, said Didi in a press release on Friday.
Xiaoju Automobile Solutions was established in 2018 and operates in 257 cities, with a network of 7,500 partners and distributors.
Ping An Bank will supply services including financing support for fleet operators, retail finance, and bank account & cash to Xiaoju Automobile Solutions, integrating Didi’s portfolio of auto-related services.
The Financial Leasing section of Ping An will provide car rental and leasing services for Didi’s ride-hailing drivers, while Ping An Property & Casualty will establish an online auto-insurance management platform together with Xiaoju Automobile Solutions.
Xiaoju and Ping An Infrastructure Investment Fund Management will jointly develop and operate EV charging services, in a move aimed at combining Ping An’s finance resources and smart city infrastructure with Didi’s data and operational expertise.
Didi has been allying with a wide range of partners including Toyota and BP, at a time when ride-hailing platforms are making huge losses worldwide.
In the second quarter of this year, Uber made a net loss of USD 5.2 billion while Lyft incurred a loss of USD 644.2 million. Leaked financial data shows that Didi, which is still a private company, generated a deficit up to RMB 10.9 billion (US$1.61 billion) in the 2018 financial year.