Alibaba, Tencent, Suning, and auto companies including Chongqing Changan Automobile have set up a $1.5 billion Chinese ride-hailing venture, said Reuters.
Suning will be the biggest shareholder with a 19% stake, while Changan said that itself, Dongfeng and FAW will each have a 15% stake in the joint venture with Alibaba and Tencent’s investment units and others holding the remaining shares.
China has the world’s largest ride-hailing market, estimated by consulting firm Bain & Co to be worth $23 billion a year.
The companies’ venture could test the dominance of ride-sharing giant Didi Chuxing, which currently takes 90% of all bookings in China, reported Reuters.