Senmiao Technology Limited, a provider of automobile transaction and related services targeting the online ride-hailing industry in China, announced the signing of a framework agreement with Chengdu Luxingtong Information Technology Co., Ltd., a China-based provider of intelligent vehicle networking services such as global satellite positioning, vehicle-related Internet of Things devices, and utilization of data to enhance driver and vehicle safety.
Under this agreement, Senmiao intends to utilize Luxingtong’s platform of integrated vehicle services for ride-sharing vehicles in Senmiao’s core markets of Chengdu and Changsha in China. Senmiao’s primary objective is to provide an all-compassing platform for ride-sharing drivers, including automobile sales, integrated technology, network implementation, and financing options.
Under the agreement, Senmiao will install telematics and safety services systems on vehicles, which will include functions and services such as global positioning and vehicle collision detection. Luxingtong will monitor and manage collected data for Senmiao, leveraging its connected car network to generate more precise information and analysis on Senmiao’s ride hailing drivers and allow for Senmiao to both monitor and optimize its fleet.
In October 2020, Senmiao signed an agreement with BYD Auto Sales., Ltd., a wholly owned subsidiary of BYD Company Limited (“BYD”,(HK:1211)), one of the largest automobile manufacturers in China, for the sale of BYD manufactured electric vehicles (“EVs”) and joint promotion of EV vehicles for utilization in China’s ride-hailing market.
Xi Wen, Senmiao’s Chairman and Chief Executive Officer stated, “Our agreement with Luxingtong is an important step in providing a full-service solution to ride-hailing drivers that covers the entire spectrum of what a commercial driver would need. We expect to provide innovative technology and flexible financing options for drivers as our network begins to gain traction in Chengdu and Changsha. We believe that by partnering with provincial and national industry leaders in China such as Luxingtong and BYD.t we can build our market leading position in our core cities while positioning Senmiao for strategic expansion to new markets.”
The framework agreement sets out the general terms of the parties’ intentions for their collaboration, with the goal reaching a more definitive agreement as the collaboration matures.