简体中文
Cao Cao Mobility, the ride-hailing unit of Chinese automaker Geely Automobile Holdings, has announced a $589 million (RMB 3.8 billion) Series B raise that the company says will help it upgrade its technology and expand its fleet, according to a
statement
released by the company (in Chinese).
The raise, which Cao Cao announced on Monday, brings the company’s total funding to around $773.2 million (RMB 5 billion). Suzhou Xiangcheng Financial Holding Group, an investment company backed by the Xiangcheng district government of Suzhou, led the round along with Suzhou High-Speed Rail New City Group and three other state-controlled enterprises.
This raise comes amid troubles for Cao Cao’s biggest competitor, Didi Global, the Chinese ride-hailing app that’s currently under
cybersecurity investigation
by the Chinese government and has been temporarily removed from Chinese app stores causing stocks to plummet. Didi has been a ride-hailing staple in China, so any setbacks can create a vacuum that others in the space will try to fill.
Cao Cao, which is currently available in 62 cities in China, saw ride volume increase 32% in July, the same month Didi was taken down from app stores in China. Meituan, China’s e-commerce giant, also saw a 24% ride increase in July, according to the
Ministry of Transport
. However Meituan and Amap, Alibaba’s ride-hailing and navigation unit, are being criticized alongside Didi by the Chinese government for “disrupting fair competition and hurting the interests of drivers and passengers,” reports Bloomberg
.
As all of the other players in the ride-hailing sphere struggle under government scrutiny, Cao Cao is positioned for further growth and a larger market share, as long as it is found to be playing fair.
