Shares in Uxin, which offers online services for used car sellers, gained nearly a third yesterday after Chinese retail behemoth Alibaba Group Holding agreed to help it rebuild its online marketplace to make it more user friendly.
Stock in the Beijing-based firm [NASDAQ:UXIN] was up 31.47 percent at USD3.76 when trading closed yesterday (Eastern Time), after a morning peak of USD3.93.
Alibaba’s e-commerce platform Taobao and Uxin penned the deal at Alibaba’s Hangzhou head office, state-backed China Securities Journal reported. Once the pair get to work on the new app, Taobao members will be able to use their credentials to login to Uxin and purchase cars from across the country, delivered.
The new version will allow potential buyers to see panoramic, virtual reality images of cars for sale to get a better idea of its condition before purchasing, the report said, adding that they will also benefit from Taobao’s user protection and financial services and its post-sale guarantees.
Chinese demand for used cars has grown quickly over recent years, particularly in third- and fourth-tier cities, according to Uxin’s Chief Executive Kun Dai, or Chris Kun. He believes Uxin’s experience in the auto sector is a good fit for the Alibaba ecosystem, which includes a vast range of digital services spanning from cloud computing to ‘vending machines’ for cars.
Founded in 2011, Uxin went public in June this year. It facilitated the sale of 634,317 vehicles in 2017, up 69.7 percent on the year, according to its prospectus — a figure that makes up nearly 40 percent of China’s online used car sales sector.
The firm also plans to work with Alibaba on big data, using Taobao’s analysis of consumer behavior to provide more accurate targeting services for second-hand car sellers and buyers on the new platform.