Senmiao Technology Establishes Cooperation with First Franchise Partner to Expand Vehicle Resources and Promote Online Ride-hailing Platform in Changsha
Senmiao Technology Limited (Nasdaq: AIHS) announced a partnership with Fire Spider Data Network to enhance its online ride-hailing platform in Changsha, China. Effective November 16, 2022, Fire Spider will act as Senmiao's franchise operating partner, focusing on expanding vehicle resources. They will pay a franchise fee and earn commissions based on operational income. This contract automatically renews annually, with termination rights for Senmiao in case of non-compliance. Chairman Xi Wen noted increased ride-hailing orders as travel restrictions ease.
- Establishment of a franchise partnership with Fire Spider Data Network to enhance resource expansion.
- Contract provides for potential recurring revenue through commission fees based on operational income.
- The partnership is expected to boost Senmiao's presence in a key city as COVID-19 restrictions are lifted.
- None.
CHENGDU, China, Dec. 16, 2022 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao" or the "Company") (Nasdaq: AIHS), a financing and servicing company focusing on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced that its wholly owned subsidiary Hunan Xixingtianxia Technology Co., Ltd. has signed a contract to establish a cooperation with Changzhou Fire Spider Data Network Technology Co., Ltd. ("Fire Spider Data Network") to expand vehicle resources and promote Senmiao's online ride-hailing platform in Changsha. Fire Spider Data Network is a technology service company integrating finance, e-commerce and supply chain.
Pursuant to the contract, Senmiao authorizes Fire Spider Data Network to be its franchise operating partner, effective November 16, 2022. Fire Spider Data Network will support Senmiao in its expansion of vehicle resources and promotion of Senmiao's ride-hailing platform in Changsha, one of Senmiao's key cities. Fire Spider Data Network will pay a one-time franchise fee to Senmiao, and Senmiao will pay commission fees based on the actual amount of operational income accrued by Fire Spider Data Network's recruited vehicles on a monthly basis. The contract expires on November 16, 2023, on which day it will automatically renew for a one-year period, subject to early termination by Senmiao in case Fire Spider Data Network fails to fulfill its obligations under the contract.
Xi Wen, Senmiao's Chairman and Chief Executive Officer, stated, "We are pleased to be working with Fire Spider Data Network as our first franchise partner, expanding our presence in Changsha through this new cooperation model. As COVID-19-related travel restrictions and local lockdowns have gradually lifted across the country in December, we have observed a steady increase in the number of daily completed orders on Senmiao's ride-hailing platform. We believe this new cooperation model will enable us to more quickly and efficiently expand our vehicle and driver base to the benefit of our ride-hailing platform. We look forward to establishing more partnerships in key cities and remain optimistic about the opportunities ahead."
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 purchases and financing, management, operating leases, guarantees 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
+1 408-538-4577 +86 10 5661 7012
csohn@equityny.com lma@equityny.com
Alice Zhang, Associate
+1 212-836-9610
azhang@equityny.com
© 2022 Senmiao Technology Ltd. All rights reserved.
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