Ride sharing is big business, and nowhere is that more apparent these days than in China. Now one of China’s smaller ride sharing firms is looking to take on Uber and others competing in the country’s increasingly competitive market.
The Chinese ride sharing company Yidao Yongche is being acquired by the tech billionaire founder of the popular video streaming site Leshi. Jia Yueting, the 41st richest person in the world’s tech sector, is acquiring a 70 percent stake in the company, according to Forbes.
In addition to online video, Jia’s Leshi Television unit develops and produces video content, and the tech entrepreneur has invested in a Hollywood studio, with plans to produce feature films.
Last year, Jia announced his intentions to get into the electric car market, and the stake in Yidao Yongche is expected to further his ambitions in the vehicle market. Currently Yidao Yongche has just a small slice of the ride sharing market in China, which is dominated by the local company Didi Kuaidi, which controls about 80 percent of the market.
Even after the $700 million investment into Yidao Yongche from Leshi, both Didi Kuaidi and Uber remain much more highly valued.
Still, Uber may be vulnerable to competition from Yidao Yongche, if proposed new rules are adopted in China. Country regulators earlier this month released new draft standards including requiring ride sharing companies ot register as taxi services, have labor contracts with drivers, and have their servers based locally.