Chinese technology majors Alibaba, Tencent and Suning plan to collaborate with automobile manufacturers like Chongqing Changan Automobile, FAW and Dongfeng Motor to establish a new $1.5 billion ride-hailing venture.
For the new ride-hailing collaboration, Changan, FAW and Dongfeng will hold a 15 percent stake each while Suning will be the largest shareholder for 19 percent.
Alibaba and Tencent will hold the remaining shares together with some investment funds.
The new ride-hailing company and its various backers will help to form business synergies that will help to bolster the company’s competitiveness.