Senmiao Technology Announces Ride-Hailing Platform Operating Metrics for December 2023
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Insights
The recent announcement by Senmiao Technology Limited regarding its operating metrics for December 2023 presents a substantial increase in completed orders, which is a positive indicator for the company's growth and can influence investor sentiment. The 13.6% increase in completed orders from November to December 2023, primarily attributed to the strategic cooperation with Anhui Lianma Technology, signifies an expansion in operational capacity and market reach. This is likely to boost investor confidence in Senmiao's business model, particularly as the ride-hailing industry in China continues to grow.
Furthermore, the shift to providing operating metric updates on a quarterly basis aligns with common financial reporting practices, potentially reducing volatility in stock price due to more consistent information flow. It is important for investors to consider the seasonality of ride-hailing services and the impact of external factors such as regulatory changes and competitive dynamics within the Chinese market.
Analyzing the financial implications of Senmiao's operational update, the increase in total fares paid by riders is a direct reflection of the company's revenue growth. The cumulative total completed orders and total fares paid by riders indicate a steady upward trajectory in operational performance. However, it is crucial to assess the profitability of the new partnership model with Lianma. The set monthly fee structure could potentially lead to different revenue dynamics compared to the commission-based model, affecting the company's margins.
Investors should also scrutinize the slight decrease in active drivers from November to December 2023. While not substantial, it could suggest challenges in driver retention or recruitment, which are critical components for scalability in the ride-hailing industry. This metric warrants attention to ensure it does not become a trend that could impede future growth.
From an economic perspective, Senmiao's operational data reflects broader economic trends in consumer behavior and transportation. The increase in ride-hailing orders may be indicative of economic recovery and increased consumer spending in China post-pandemic. However, the company's reliance on strategic partnerships like the one with Lianma also underscores the importance of collaborative models in today's sharing economy. The potential long-term benefits include increased efficiency and market penetration, yet the reliance on partners also introduces new risks related to dependency and control over service quality.
The data provided does not include profitability metrics, which are crucial for assessing the sustainability of Senmiao's growth. While the increase in completed orders and fares is positive, it is essential to understand the cost structure associated with the new model to evaluate the net impact on the company's financial health.
Numbers reported include the number of completed orders from several ride-hailing platform partners in
Since the launch of Senmiao's online ride-hailing platform in October 2020, more than 26.2 million rides have been completed using its own platform. Approximately 9.2 million rides have been completed on several platforms in partnership with Senmiao under the new model3. The number of drivers completing rides via all the platforms (known as Active Drivers) in December 2023 was 5,127, compared to 5,240 in November 2023.
Starting 2024, Senmiao will begin providing operating metric updates on its online ride-hailing business on a quarterly basis as part of its financial result disclosures.
The table below presents approximate unaudited operating metrics of Senmiao and its affiliates' online ride-hailing platform since the launch in October 2020.
Completed (in 000s) | Completed | Total Completed (in 000s) | Total Fares (in 000s USD$) | Active | ||||||
Oct-Dec 2020 | 1,318 | 1,318 | 4,039 | N/A | ||||||
Jan-Dec 2021 | 13,360 | 2,485 | 15,845 | 49,505 | N/A | |||||
Jan 2022 | 455 | 492 | 947 | 3,413 | 7,085 | |||||
Feb 2022 | 344 | 371 | 715 | 2,651 | 6,008 | |||||
Mar 2022 | 534 | 480 | 1,014 | 3,660 | 7,091 | |||||
Apr 2022 | 502 | 369 | 871 | 3,009 | 6,095 | |||||
May 2022 | 581 | 357 | 938 | 3,286 | 5,989 | |||||
June 2022 | 602 | 319 | 921 | 3,290 | 5,862 | |||||
July 2022 | 636 | 337 | 973 | 3,504 | 5,928 | |||||
Aug 2022 | 617 | 400 | 1,017 | 3,583 | 6,778 | |||||
Sept 2022 | 414 | 114 | 528 | 1,712 | 6,030 | |||||
Oct 2022 | 600 | 306 | 906 | 2,794 | 7,574 | |||||
Nov 2022 | 456 | 298 | 754 | 2,267 | 7,019 | |||||
Dec 2022 | 390 | 267 | 657 | 1,973 | 6,682 | |||||
Jan 2023 | 338 | 239 | 577 | 1,928 | 4,830 | |||||
Feb 2023 | 460 | 276 | 736 | 2,328 | 5,973 | |||||
Mar 2023 | 522 | 313 | 835 | 2,614 | 7,092 | |||||
Apr 2023 | 600 | 256 | 856 | 2,748 | 7,422 | |||||
May 2023 | 538 | 229 | 767 | 2,449 | 7,470 | |||||
June 2023 | 524 | 216 | 740 | 2,322 | 6,891 | |||||
July 2023 | 440 | 250 | 690 | 2,205 | 5,815 | |||||
Aug 2023 | 384 | 233 | 617 | 1,962 | 5,412 | |||||
Sept 2023 | 405 | 201 | 606 | 1,892 | 6,065 | |||||
Oct 2023 | 399 | 170 | 569 | 1,731 | 5,903 | |||||
Nov 2023 | 359 | 125 | 484 | 1,448 | 5,240 | |||||
Dec 2023 | 456 | 94 | 550 | 1,663 | 5,127 | |||||
Cumulative | 26,234 | 9,197 | 35,431 | 113,976 | N/A |
1 Under the original model, orders coming from partner platforms are completed by Senmiao's own platform. A rider can search for taxi/ride-hailing services on Senmiao's partner platforms, which then provide the rider with options for online ride-sharing service providers, including Senmiao. If the rider selects Senmiao, the order will then be distributed to registered drivers on Senmiao's own platform for viewing and acceptance and then completed by Active Drivers. Senmiao earns commissions for each completed order based on a certain percentage of the value of the order. Since December 2023, Lianma is responsible for the comprehensive operation of Senmiao's platform under this model.
2 Under the new model, orders go through partner platforms but do not utilize Senmiao's own platform. Online ride-hailing requests and orders will be completed on the partner platforms utilizing Senmiao and its affiliates' network of cars and drivers for a set monthly fee.
3 New model commenced in August 2021.
About Senmiao Technology Limited
Headquartered in
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
+1 408-538-4577 +86 10 5661 7012
csohn@equityny.com lma@equityny.com
Alice Zhang, Associate
+1 212-836-9610
azhang@equityny.com
© 2024 Senmiao Technology Ltd. All rights reserved.
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SOURCE Senmiao Technology Limited
FAQ
What operating metrics did Senmiao announce for its online ride-hailing platform in December 2023?
How many rides have been completed since the launch of Senmiao's online ride-hailing platform in October 2020?
How often will Senmiao provide operating metric updates for its online ride-hailing business starting in 2024?
