China's top ride-hailing app Didi Kuaidi and leading private bank China Merchants Bank (CMB) on Tuesday announced a comprehensive strategic partnership that includes an equity investment, in-app credit card payments, joint bank cards, automobile financing services and driver recruitment.
The equity investment makes CMB latest addition to the mobile app's powerful backers that already includes Tencent, Alibaba, China Investment Corporation, Ping An Ventures, China International Capital Corporation, CITIC Capital, Beijing Automotive Group and others.
Neither side disclosed the amount of the investment. Didi Kuaidi raised a record-breaking 3 billion U.S. dollars last year.
At a press conference announcing the partnership, Jean Liu, president of Didi Kuaidi, called the CMB investment "a heavyweight", saying its relationship with CMB is "strong and trusting."
Liu said the partnership with CMB would enable the app to connect its financial and mobile online-to-offline platforms to CMB's experience in the banking sector to build the world's largest online ride-hailing platform.
"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," she said.
CMB customers will be able to pay fares with CMB credit cards. Both companies will begin accepting applications for joint CMB-Didi credit and savings cards through CMB's sales channels or Didi's app in the second quarter of this year.
Didi drivers and car owners will be able to finance vehicle purchases through CMB, with terms and payments based on a joint review by CMB and Didi. Didi Kuaidi and CMB will share client information in line with regulations.
Zhao Ju, executive vice president of CMB, said the deal with Didi would advance CMB's internet finance strategy in the sharing economy.
China has about 688 million Internet users and most of them spend money through their mobile phones every day, according to data from the China Internet Network Information Center.
With more than 250 million registered app users and 14 million registered drivers, Didi Kuaidi is one of the most popular apps and online payment platforms, recording 1.43 billion rides last year.
