New | LeTV’s latest Beijing investment could signal harder times for Uber
LeTV’s announcement of a strategic investment in Yidao Yongche comes as Beijing weighs up legislation that could be negative for Uber’s business model
Chinese internet conglomerate LeTV announced a bold investment on Tuesday that seems inspired by both the success and potential failure of transportation networking company Uber.
Instead of piling into direct competition with Uber, they have instead chosen to invest in a platform that links up licensed operators and customers in the car rental market, an e-commerce concept deemed less at risk as the government weighs up new regulation.
LeTV, which controls Shenzhen-listed Leshi, and famous for securing the Hong Kong broadcasting rights to the English Premier League for three years starting in 2016, announced on Tuesday it has purchased a 70 per cent stake in Yidao Yongche, a car-rental company based in Beijing. LeTV did not reveal the cost of the investment.
LeTV was rumoured to be talks for a controlling stake in Uber China in early October, although both parties said these discussions never took place.
Uber China raised US$1.2 billion in its latest fund raising, which was completed last month.
Uber CEO, Travis Kalanick, speaking at Beijing event hosted Baidu in September, said he plans to expand the ride sharing app to 100 mainland Chinese cities in the coming year.
