China car-sharing business gets $20 million

K2VC led the angel round and was joined by Ameba Capital, Shunwei Capital, and other unnamed investors. The Series A was led by Legend Capital and featured K2VC among others, according to a statement. No details were given as to the size of each round.

Like Chuxing’s app – which is used to locate and book rides – went live in June 2017 in Guangzhou and services have since expanded to Foshan, Wuhan, Chengdu, Nanjing, and Changsha. The company claims that 80% of users in downtown urban areas can find a shared car within 500 meters that travels immediately. By June, it expects to be in 10 cities with an available fleet size of 15,000.

Yang Wang, Like Chuxing’s CEO, noted that the average daily mileage of private cars in first and second-tier cities in China is about 40 kilometers, while in the shared vehicle segment it is 30-35 km. The daily average mileage for bicycles is more than 140 km, while the average daily driving time is 14 hours, with over five orders per day. He wants to help bring about greater efficiency on the automotive side.

There have been a variety of past PE and VC investments in car-sharing businesses. Most recently, according to AVCJ Research’s records, General Motors bought a stake in VC-backed Yi Wei Xing in 2016. A year earlier, Dida Pinche – which was described as a peer-to-peer (P2P) car-sharing service, received a Series C round of $100 million. Other start-ups to receive funding include uuzuche and Tiantian Yongche.

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• Topics
• Greater China
• Early-stage
• Technology
• China
• Venture
• Legend Capital
• Shunwei Capital Partners
• Ameba Capital