Uber China and Guangzhou Automobile Group Co., Ltd. inked a strategic deal in equity investment, automobile sales, service, finance, marketing, and new energy car development.
Uber reportedly plans to cooperate with GAC Group in new car purchases and a used car trading platform. At the same time, Uber will use its big data technology and brand advantages to help GAC Group expand its market in China and abroad.
IUber and GAC Group will implement full cooperation to develop energy-saving and new energy cars, covering hybrid vehicles and pure electric vehicles. It is unclear though how Uber, which is a foreign company, will invest and take part in the electric vehicle business.
Uber's businesses have reached over 360 cities in 67 countries and regions around the world and it is the only mobile travel platform that realizes true global coverage. In February 2014, Uber started operation in China. So far, it has entered 21 Chinese cities and the company plans to increase the number of 100 over the next 12 months. its road in China has been rocky though, as it competes with entrenched rivals who appear to have the backing of local governments.
In October 2015, Uber registered a new company in the China (Shanghai) Pilot Free Trade Zone with CNY2.1 billion registered capital and the company promised to invest up to CNY6.3 billion in China in the future. In addition, with a planned investment of CNY63 million, its operating center in the Wuhan East Lake High-tech Development Zone also began.