The Leshi Information Technology Co. (LeTV) recently announced that it will acquire a 70-percent stake in a leading Chinese car-hailing app provider, Yidao Yongche.
This move makes LeTV the largest shareholder of the firm.
According to LeTV's electric vehicle business unit, the investment also marks the completion of its electric car strategy.
Previously, the Beijing-based company has inked deals with BAIC Motor and Aston Martin and has invested in other upstream and downstream firms, a company announcement sent to the Global Times stated.
LeTV noted that by cooperating with the said companies, it has completed its foray in China's Internet-based smart electric car industry.
The agreement with Yidao Yongche comes after LeTV announced on Oct. 15 another deal with two major players in the local car-hailing sector, the UCAR Technology Inc. and Edaijia.
Yidao Yongche, founded in 2010, covers 77 cities across the country and 24 cities abroad.
Meanwhile, LeTV is a firm that joins the ranks of other Internet giants such as Baidu Inc., Tencent Holdings and Alibaba Group Holding.
For Fu Zhiyong, managing director of the Beijing-based ACME Consulting, the partnership between the two is advantageous for both parties.
"LeTV can better deploy its Internet-based ecosystem in the automotive industry through its investment in Yidao. Because of its connection with the Internet-powered car-hailing industry, Yidao is expected to bring more customers to LeTV," Fu said.
"Yidao as a well-performing car company in the online-to-offline area is an ideal partner," Xu Wei, an online secondhand car dealer, remarked.
Xu also noted that LeTV can now diversify its products through its partnership with Yidao.