Senmiao Technology Announces New Cooperation Agreement with Leading E-commerce Platform for Servicing Major Cities of Chengdu and Guangzhou

Rhea-AI Summary

Senmiao Technology Limited (Nasdaq: AIHS) announced a new contract with Shanghai Lutuan Technology, an affiliate of Meituan, enhancing their collaboration in the online ride-hailing industry in China. This agreement allows ride-hailing requests to be processed through Meituan's platform, utilizing Senmiao's network of cars and drivers for a set monthly fee. Notably, this new model will not affect driver incomes, as incentives will be managed by Meituan. The company currently serves about 1,200 drivers in Chengdu and aims to expand operations to other cities.

Positive

• New contract signed with Meituan, enhancing collaboration.
• Utilization of Senmiao's network of drivers for increased service efficiency.
• No impact on drivers' incomes, with incentives managed by Meituan.
• Current service supports approximately 1,200 drivers in Chengdu.

Negative

• None.

CHENGDU, China, Sept. 14, 2021 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao" or the "Company") (Nasdaq: AIHS), a financing and servicing company focused on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced the signing of a new contract with Shanghai Lutuan Technology, an affiliate of Meituan (HK: 3690), China's leading e-commerce platform for services focused on its "Food + Platform" strategy.

According to this new cooperation agreement, online ride-hailing requests and orders will be completed on Meituan's platform ("the major platform") utilizing Senmiao's network of cars and drivers for a set monthly fee. This new agreement will have no impact on drivers' incomes, and drivers' incentives will be paid by the major platform going forward.

In August 2021, Senmiao leased cars and provided related services to approximately 1,200 drivers in Chengdu who operated their online ride-hailing businesses through the major platform under the new partnership model.

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We are pleased to continue our partnership with Meituan under this new model, whereby we provide Meituan with access to our network of cars and drivers in Chengdu and Guangzhou. In turn, our drivers benefit from increased access to potential riders utilizing the major platform for various services. We believe this arrangement will become even more favorable to Senmiao's operations over the long term, and we look forward to the potential opportunity to expand this relationship to other cities."

About Senmiao Technology Limited

Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchase and financing, management, operating lease, guarantee and other automobile transaction services as well as operates its own ride-hailing platform aimed principally at the growing online ride-hailing market in Senmiao's areas of operation in China. For more information about Senmiao, please visit: http://www.senmiaotech.com. Senmiao routinely provides important updates on its website.

Cautionary Note Regarding Forward-Looking Statements 

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements (including those relating to the operation of Senmiao's ride-hailing platform) are subject to significant risks, uncertainties and assumptions, including those detailed from time to time in the Senmiao's filings with the SEC, and represent Senmiao's views only as of the date they are made and should not be relied upon as representing Senmiao's views as of any subsequent date. Senmiao undertakes no obligation to publicly revise any forward-looking statements to reflect changes in events or circumstances. 

For more information, please contact:

At the Company:
Yiye Zhou
Email: edom333@ihongsen.com 
Phone: +86 28 6155 4399

Investor Relations:
The Equity Group Inc.                                                 In China
Carolyne Sohn, Vice President                                   Lucy Ma, Associate
+1 415-568-2255                                                         +86 10 5661 7012
csohn@equityny.com                                                  lma@equityny.com  

© 2021 Senmiao Technology Ltd. All rights reserved.

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SOURCE Senmiao Technology Limited

FAQ

What is the significance of Senmiao's new contract with Meituan?

Senmiao's new contract with Meituan enhances its operational efficiency by allowing ride-hailing requests to be processed through Meituan's platform while utilizing Senmiao's network of drivers.

How does the new agreement affect Senmiao's drivers?

The new agreement will not impact drivers' incomes as their incentives will be paid by Meituan.

How many drivers does Senmiao currently support?

As of August 2021, Senmiao provides services to approximately 1,200 drivers in Chengdu.

What are the future plans for Senmiao Technology?

Senmiao plans to expand its partnership with Meituan into other cities, further enhancing its service reach.

When was the new contract with Meituan announced?

The new contract was announced on September 14, 2021.