China’s leading private bank, China Merchants Bank (CMB), and Didi Kuaidi, the top ride-hailing mobile app in China, on Tuesday, Jan. 26, announced a strategic partnership. The partnership includes an equity investment, joint bankcards, in-app credit card payments, driver recruitment, and automobile financing services.
The equity investment makes CMB the latest inclusion to the mobile app's strong backers including Tencent, Alibaba, Ping An Ventures, China Investment Corporation, CITIC Capital, International Capital Corporation and Beijing Automotive Group, among others.
According to Xinhua, neither of the parties in the partnership has disclosed the amount of the investment. However, Didi Kuaidi raised a record-breaking $3 billion in 2015.
Making the announcement at a press conference, Jean Liu, the president of Didi Kuaidi, referred to the CMB investment "a heavyweight," pointing out that its association with CMB is "strong and trusting."
Liu added that the relationship would enable the app to link its fiscal and mobile online-to-offline platforms to CMB's experience in the banking sector to create the world's largest online ride-hailing platform, the Global Times reported.
Liu said, "In the spirit of openness and collaboration, Didi looks forward to building an ever stronger, broader transportation platform with China's leading financial and industry players."
The partnership will enable CMB clients to pay fares using CMB credit cards. The two corporations will start accepting applications for joint CMB-Didi credit and savings cards via CMB's sales channels or Didi's app in Q2 2016.
Didi drivers and car owners will finance vehicle purchases via CMB, with terms and payments according to a joint review by the two parties. The companies will share customer information in line with policies.
The executive vice president of CMB, Zhao Ju, said that the partnership with Didi will enhance CMB's Internet finance technique in the sharing economy.
Data from the China Internet Network Information Center reveals that the country has approximately 688 million Internet users and most of them spend money through their mobile phones on a daily basis.
With over 250 million registered users and 14 million registered drivers, Didi Kuaidi is among the most popular app and online payment agencies, recording 1.43 billion rides last year.