Senmiao Technology Announces Ride-Hailing Platform Operating Metrics for August 2021

Rhea-AI Summary

Senmiao Technology Limited (Nasdaq: AIHS) reported a significant decline in completed orders for its online ride-hailing platform, with only 530,000 orders in August 2021, down from 1.7 million in July 2021. This decrease is attributed to a new partnership with Meituan, which now processes ride requests through its platform for a fixed monthly fee. The company has engaged approximately 1,200 drivers in Chengdu under this new model and recorded over 55,000 orders in Guangzhou, with nearly 48,000 new drivers registered. The total rides completed since launch stand at 12.7 million.

Positive

• New partnership with Meituan allows expanded operational capacity.
• Introduction of a new metric for business performance focusing on newly registered drivers.

Negative

• Significant drop in completed orders from July to August (1.7 million to 530,000).
• Dependency on the Meituan platform could limit control over service quality and revenues.

CHENGDU, China, Sept. 15, 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 operating metrics for its proprietary online ride-hailing platform for the month of August 2021. In August 2021, Senmiao's platform reported 530,000 completed orders, compared to approximately 1.7 million in July 2021. The decrease was a result of a new contract entered by the Company and Shanghai Lutuan Technology, an affiliate of Meituan (HK: 3690), China's leading e-commerce platform for services, as announced in a press release on September 14, 2021. 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.

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. Senmiao also began its services with Gaode Maps in Guangzhou, reporting over 55,000 completed orders and nearly 48,000 newly registered drivers in the city for the month.

Since the launch of Senmiao's online ride-hailing platform in Chengdu (October 2020), Changsha (December 2020), Neijiang (January 2021), Guangzhou (March 2021), and Nanchong and Panzhihua (June 2021), approximately 12.7 million rides have been completed using its platform. With the cooperation agreement between the Company and Meituan, the number of completed orders is no longer the most relevant metric of the Company's business performance. Senmiao will provide updates on the number of newly registered drivers each month in addition to previously provided metrics to offer additional insight into the business' progress.

The table below presents approximate unaudited operating metrics of Senmiao's online ride-hailing platform since its launch in October 2020.

		Completed Orders (in thousands)		Total Fares Paid by Riders ($ in thousands USD)		Newly Registered Drivers		Active Drivers
October 2020		161		531				1,800
November 2020		537		1,646				3,400
December 2020		620		1,862				5,000
January 2021		910		2,626				8,300
February 2021		710		2,164				7,000
March 2021		1,540		4,492		6,000		11,500
April 2021		1,790		5,332		11,100		16,500
May 2021		2,154		6,376		6,600		18,000
June 2021		2,068		6,193		6,700		18,500
July 2021		1,659		4,864		16,200		16,400
August 2021		530		1,680		49,500		6,073
Cumulative		12,679		37,766		N/A		N/A

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. 
Carolyne Sohn, Vice President
+1 415-568-2255
csohn@equityny.com                                                                      

In China
Lucy Ma, Associate
+86 10 5661 7012
lma@equityny.com

© 2021 Senmiao Technology Ltd. All rights reserved.

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SOURCE Senmiao Technology Limited

FAQ

What was the number of completed orders reported by Senmiao Technology in August 2021?

Senmiao Technology reported 530,000 completed orders in August 2021.

What caused the decline in completed orders for Senmiao in August 2021?

The decline was due to a new partnership with Meituan, which now processes ride requests for a fixed monthly fee.

How many newly registered drivers did Senmiao report in August 2021?

Senmiao reported nearly 48,000 newly registered drivers in Guangzhou for August 2021.

What is the cumulative number of rides completed on Senmiao's platform since launch?

Senmiao has completed approximately 12.7 million rides since the launch of its platform.

What new metric will Senmiao provide to track business performance?

Senmiao will provide updates on the number of newly registered drivers each month as a new performance metric.